Utah ~ Sales and Use Tax: Software Interfaces Were Nontaxable Custom Software

A medical testing company’s purchases of software interfaces were not subject to Utah sales and use tax because the interfaces were custom computer software. Sales of prewritten computer software are taxable, while sales of custom computer software are exempt as sales of personal services. Prewritten software is software not designed and developed to a purchaser’s specifications. The purchased software interfaces allowed the company and to share testing information and communicate between its medical records system and the systems of its customers. The company used different records systems than its customers, so different interfaces were developed by different vendors to accommodate the unique programming language of each customer’s system. Thus, the software interfaces were not prewritten software, but were custom software.

Private Letter Ruling, Opinion No. 15-004, Utah State Tax Commission, September 28, 2015, ¶401-111

 

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Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

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