New Tax on Computer Consulting Services

Well, it’s finally happened, and we want you to be the first to know: all computer consulting and software will be taxed, starting tomorrow, July 31st, 2013.

Check out the full article on the Mass.gov site.

Here is a snippet of the opening paragraph.

TIR 13-10: Sales and Use Tax on Computer and Software Services Law Changes Effective July 31, 2013

The following is a Technical Information Release concerning recently-enacted sales and use tax changes effective July 31, 2013. The purpose of this TIR is to announce the statutory changes and their effective date, and to provide initial guidance. However, the Department also solicits input from affected taxpayers regarding application of the sales/use tax on computer system design services and software modification services to particular transactions or business practices. DOR anticipates that further guidance will be provided in the future, including an amendment to Regulation 830 CMR 64H.1.3.

If you wish to submit comments or suggestions regarding the application of sales and use taxes to these computer/software services, please send them to rulesandregs@dor.state.ma.us . DOR also anticipates that there will be opportunity for public comment on a working draft of the regulation amendment before it is formally proposed.