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 electronically 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.
Reference: Important Notice 15-14. Tenn. Code Ann. §§ 67-6-102 and 67-6-231.
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