Indiana DOR Determines Company Was Entitled to Sales Tax Refund for Computer Software Services Purchases (Decision 7 of 7)

The Indiana Department of Revenue (DOR) April 12 determined in a letter ruling that Taxpayer was entitled to a refund of sales and use tax paid on transactions with software vendors. Taxpayer, an Indiana-based company, filed a claim for a refund for tax paid on transactions involving pre-written computer software that occurred before July 1, 2018. The DOR denied the refund. Taxpayer protested. Upon review, the DOR noted: 1) before July 1, 2018, charges for accessing prewritten software maintained on a vendor’s or third party’s computer servers weren’t subject to tax when accessed electronically via the Internet if ownership of ...