South Carolina – Cloud Computing and Storage Not Subject To Sales And Use Tax

SALT Report 3461 – The South Carolina Department of Revenue issued Private Letter Ruling 14-2 which stated that cloud computing and storage services provided by the taxpayer, and usage fees associated with these services, were not subject to sales and use tax.  Although the Department imposes tax on some intangibles and services, such as communication services, it was determined that the services provided did not qualify as communication services because they were not charges directly related to “sending a signal of the voice or of messages”.  Additionally there was no sale of tangible personal property to make the sales taxable.

For Further Information:

SC Private Letter Ruling 14-2