Virginia – Taxation Of Software Sales To Manufacturing Businesses/Cloud Computing

SALT Report 3355 – The Virginia Tax Commission released Ruling Number 14-42 addressing cloud taxation:

“The Taxpayer has inquired about the Department’s position regarding the sales and use taxation of cloud computing services. Generally, cloud computing services are treated in the same manner as the electronic transfer of software products. There is typically no transfer or provision to customers of cloud computing services via a tangible medium. For this reason, transactions for cloud computing services are an exempt service and are not subject to the retail sales and use tax. The Department has issued two public documents that address cloud computing services, P.D. 12-191 (11/29/12) and P.D. 13-182 (10/18/13).”

For Further Information:

Virginia Ruling of Tax Commissioner Number 14-42, March 20, 2014

P.D. 12-191 (11/29/12)

P.D. 13-182 (10/18/13)