Company Sells Exempt Services, Not Software, N.Y. Judge Says (1)

A company that provides tracking and analytics information to sales teams isn’t liable for tax on the sales of its services, a New York administrative law judge ruled.

New York’s taxation division found Yesware Inc. owed $308,481.91 in sales tax, plus interest, for October 2014 to May 2018 on subscription fees it charges customers, based on its conclusion that the company was selling taxable prewritten software.

Administrative Law Judge Jessica DiFiore of the New York Division of Tax Appeals disagreed with the state’s assessment, finding Yesware’s customers pay for exempt information services, and any use of its software is ...