RAS-2 - Taxability of Computer Software – Generally

Prewritten and custom computer software is taxable in Tennessee if it is:      

• provided to the customer in Tennessee on tangible storage medium (e.g., disks and tapes);
• provided to the customer by loading and leaving on the customer’s (or the customer’s designee’s) computer in Tennessee;          
• provided to the customer by electronic delivery (e.g., download) to the customer’s computer in Tennessee;    
• provided to the customer by programming in the customer’s (or the customer’s designee’s) computer in Tennessee; or  
• remotely accessed by the customer from a location(s) in Tennessee (remotely accessed software means software that remains in the possession of the seller but is made available to the customer for the customer’s use from a remote location.  See Important Notice #15-14 for more information.