Cloud services will be exempt from Indiana sales tax, effective June 30, 2018.
Under a new law, sales of access to prewritten software will not be retail transactions if the end user accesses the software:
- via the Internet; or
- through wireless media.
Exempt Cloud Services Transactions
The exemption will apply to end users who obtain access cloud services by:
- lease; or
In addition, an end user’s right to access may be over either a private network or public network.
The law states that sales of cloud services will not be considered transactions in which prewritten software is delivered electronically.
Readers can view the bill on the Indiana General Assembly’s website.
S.B. 257, Laws 2018, effective as noted above