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Product ID: 406729EAU
 
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Multistate Taxation of Software Warranties and Maintenance Agreements

OnDemand Webinar (93 minutes)

Gain an understanding of different factors that affect the sales tax treatment of software maintenance agreements.The sales tax treatment of software taxation is always changing. Additional complexities arise when trying to determine the tax treatment of software warranty and maintenance agreements. With the enactment of economic nexus statutes across the U.S., determining the correct taxation of warranty and maintenance agreements is more important than ever, as the requirement to collect tax in most states is now based solely upon sales made into the jurisdiction. If a company fails to collect, they may be held liable for tax due on their sales plus penalties and interest. This topic will help you gain a better understanding of the factors that affect the sales tax treatment of software maintenance agreements.

Authors

Joseph Hatfield, CPA, BDO USA, LLP David McIntyre, CMI, BDO USA, LLP

Agenda

General State Tax Issues With Warranties and Maintenance Agreements

• Nexus Issues for Mandatory vs. Optional Warranties and Maintenance

• Physical Products vs. Software

• Taxability or Exemption Parts and Labor

Complex Issues With Warranties

• States That Impose True Object Tests

• Third-Party Warranty Administrators

• Inventory Withdrawals of Repair Parts

Tax Treatment of Warranties in Various States

• Texas

• California

• Florida

• New York

• Massachusetts

• Illinois

• Minnesota

Options for Multistate Compliance

• Documentation

• What Does Contract Cover?

• Invoice Presentation