Massachusetts – Reporting and Filing Date for Computer Services Extended

SALT Report 2977 – The Massachusetts Department of Revenue announced that they are extending the due date for reporting and remitting the sales and use tax collected on computer system design services and modifications, integrations, enhancements, installations, and configurations of standardized or prewritten software.

As previously reported, these services became taxable on July 31, 2013 and the tax that was collected from July 31 – August 31, 2013, should have been reported and paid by September 20, 2013.   However, because the Governor, the Senate president, and the Speaker of the House have publicly stated their desire to repeal the new provisions, the Commissioner has authorized a filing extension.  Therefore, taxpayers should report and pay any taxes collected on these transactions from July 31 – September 30, 2013 on the September return, which is due on October 20, 2013.

This extension will help minimize the burden placed on vendors during the period in which the Legislature is likely to consider a repeal of these provisions. If the provisions are repealed, the Department will issue guidance regarding refunds to customers for any taxes collected, as well as applications for abatement on taxes remitted to the Department.

For Further Information

Massachusetts Department of Revenue – Technical Information Release 13-14

SALT Report 2811 – Guidance Regarding the New Computer and Software Services Tax

SALT Report 2782 – Taxability of Computer and Software Services