About Mass Sales and Use Tax on Computer and Software Services

This page is about a new tax on certain computer and software services effective July 31, 2013.  The new tax on computer/software services has two components which, although interrelated, are distinct and have a different scope:

  1. Provisions relating to modification, integration, enhancement, installation or configuration (hereafter “modification”) of standardized/prewritten software.
  2. Provisions relating to computer system design services.

The Department of Revenue anticipates issuing ongoing guidance regarding the tax on computer/software services as needed to address issues and questions that arise regarding implementation of the tax.  These will be listed at page named ‘recent-tax-changes’ and are highlighted in the links below.

 

DOR page giving latest info on IT Tax

 http://www.mass.gov/dor/utility/recent-tax-changes.html 

More info from above page:

 http://www.mass.gov/dor/businesses/help-and-resources/legal-library/tirs/tirs-by-years/2013-releases/tir-13-10.html

 http://www.mass.gov/dor/businesses/help-and-resources/legal-library/tirs/tirs-by-years/2013-releases/working-draft-tir-computer-software.html 

Discussions about the Tax on HT Discussion list:  http://lists.hidden-tech.net/pipermail/hidden-discuss/2013-August/thread.html

Actual Law:  https://malegislature.gov/Bills/188/House/H3535