Missouri Software as a Service Subscription Agreement

State:
Multi-State
Control #:
US-13107BG
Format:
Word; 
Rich Text
Instant download

Description

Software as a service (SaaS) is a software distribution model in which a third-party provider hosts applications and makes them available to customers over the Internet. SaaS is one of three main categories of cloud computing.
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  • Preview Software as a Service Subscription Agreement
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FAQ

Domestic use means the portion of metered water service, electricity, electrical current, natural, artificial or propane gas, wood, coal or home heating oil that is used for non-business, non-commercial or non-industrial purposes. All of these items are exempt from sales and use tax under Section 144.030, RSMo.

Purchases of software maintenance/support delivered electronically (and remotely by phone) are not subject to sales or use tax if the original software was delivered electronically, but are generally taxable if it was canned software delivered in a tangible format (unless the maintenance/support is optional and is

Examples of other real property services include landscaping, garbage removal, building or grounds cleaning, janitorial services, structural pest control and real property surveying. Real property services that involve repair are generally taxable services.

In most states, where services aren't taxable, SaaS also isn't taxable. Other states, like Washington, consider SaaS to be an example of tangible software and thus taxable. Just like with anything tax related, each state has made their own rules and laws.

Is SaaS taxable in Missouri? No. You don't owe tax for the sale of cloud software subscriptions to customers in Missouri.

California: SaaS is not a taxable service. However, software or information that is delivered electronically is exempt. The ability to access software from a remote network or location is exempt. Under California sales and use tax law, there must be a transfer of TPP, in order to have a taxable event.

Only two states Tennessee and Vermont have specific statutes in place to address SaaS transactions and sales tax.

Services in Missouri are generally not taxable. However if the service you provide includes selling, creating or manufacturing a product, you may have to deal with the sales tax on products. Tangible products are taxable in Missouri, with a few exceptions.

(I) The sale of software as a service is not subject to tax. The service provider must pay sales or use tax on any tangible personal property used to provide the service that is purchased or used in Missouri.

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Missouri Software as a Service Subscription Agreement