SALT Report 3181 – License exemption pursuant to section 130.1935(a)(1)(A) requires signature. Most software is licensed over the internet with “customer checking a box that states they accept the license terms. Acceptance in this manner does not constitute a written agreement signed by the licensor and the customer.”
To meet the requirements for a license exemption agreement under section (a)(1)(A) of Section 130.1935, “the agreement must contain the written signature of the licensor and customer.”
The GIL also discusses the various other criteria related to SAAS taxability in the context of a franchising restaurant chain purchasing cloud solutions.
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