TX Tax Bite: Software Modification

Posted by Mary Thomas on Oct 11, 2017 9:05:00 AM

software-1.jpgMost taxpayers know that in Texas software is subject to sales and use tax. It is common for taxpayers to assume that software is taxable but modification services are not taxable. The assumption is based on the perceived absence of software modification in the listing of taxable services. Software modification is taxable if the software is being modified by the party that sold the software. Software modification is not taxable if it is performed by a party that did not sell the software.

Topics: Sales Tax

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