Generally, remotely accessed software is software that remains in the possession of the seller or the seller’s designee and is accessed remotely by the purchaser. Examples of remotely accessed software include accounting software, tax preparation software, human resources software, word processing software and other software applications that are remotely accessed. Beginning July 1, 2015, access of remotely accessed software from a Tennessee location is subject to the Tennessee sales and use tax.
Remotely accessed software does not include:
- information or data processing services (including the capability of the customer to analyze such information or data provided by the dealer);
- payment or transaction processing services; payroll processing services;
- billing and collection services;
- Internet access;
- the storage of data, digital codes, or computer software;
- or the service of converting, managing, and distributing digital products. These services are not subject to tax even if the purchaser uses remote access to utilize or receive the service.