Kansas Software Maintenance Agreement
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FAQ
Kansas. Digital products are generally NOT taxable. Streaming video subscriptions are taxable as a television and radio subscriber services delivered over the Internet. Downloaded video games are taxable as downloaded prewritten computer software.
You may ask yourself; I have the ship to state covered, what else? Well, nine states including Alabama, California, Florida, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, and Washington along with Washington D.C. do not allow sellers to accept out of state resale certificates.
The following services are NOT TAXABLE because they do not involve the installation, application, service, maintenance, or repair of tangible personal property: Accounting. Cleaning. Legal services. Architectural consulting. Mowing. Broadcasting. Engineering. Snow removal.
If the out- of-state retailer DOES NOT have sales tax nexus with Kansas, it may provide the third party vendor a resale exemption certificate evidencing qualification for a resale exemption, regardless of the state in which the retailer is registered for sales tax.
Out-of-State Sales If the retailers sells merchandise to be shipped or delivered to the purchaser out-of-state, then the sales is considered to occur out-of-state, and no Kansas sales tax is due. The out-of-state purchaser may owe compensating use tax in the state where the purchaser is located.
Wholesalers and buyers from other states not registered in Kansas should use the Multi-Jurisdiction Exemption Certificate, Form ST-28M, to purchase their inventory.
There is no fee for the sales tax permit in Kansas. Other business registration fees may apply. Contact each state's individual department of revenue for more about registering your business.
SaaS and other digital products are generally not taxable in Kansas, though the state does tax traditional downloaded software.