Sales/Use/Indirect:
Vermont Department of Taxes Explains Recent Repeal of Cloud Software Exemption
Prewritten Computer Software, Vt. Dept. of Taxes (7/24). The Vermont Department of Taxes (Department) posted guidance explaining that pursuant to recently enacted legislation [see H.B. 887 (2024), and State Tax Matters, Issue 2024-25, for more details on this legislation], effective as of July 1, 2024, all sales of prewritten computer software are now subject to Vermont sales and use tax – including “software purchased on storage media, downloaded to a computer system, or accessed remotely via the internet.” In doing so, the Department states that since 2015 in Vermont, “prewritten software accessed remotely and not downloaded had been exempt from sales tax;” however, Vermont sales and use tax now applies to all prewritten computer software “regardless of the method in which the software is delivered or accessed, effective July 1, 2024.” The Department also addresses what does and does not constitute taxable “prewritten computer software” in Vermont, noting that “the first payments of sales and use tax on prewritten computer software accessed remotely are due on or before August 1, 2024, unless the seller is eligible to make quarterly or annual payments.” Please contact us with any questions.
30 Rockefeller Plaza New York, NY 10112-0015 United States
About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities (collectively, the “Deloitte organization”). DTTL (also referred to as “Deloitte Global”) and each of its member firms and related entities are legally separate and independent entities, which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions, and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more.
Deloitte provides industry-leading audit and assurance, tax and legal, consulting, financial advisory, and risk advisory services to nearly 90% of the Fortune Global 500® and thousands of private companies. Our professionals deliver measurable and lasting results that help reinforce public trust in capital markets, enable clients to transform and thrive, and lead the way toward a stronger economy, a more equitable society and a sustainable world. Building on its 175-plus year history, Deloitte spans more than 150 countries and territories. Learn how Deloitte’s approximately 415,000 peopleworldwide make an impact that matters at www.deloitte.com.
