Cloud Computing and Electronically Delivered Software Not Subject to Florida Sales and Use Tax – PR Newswire (press release)

September 28, 2016 Facebook Twitter LinkedIn Google+ Uncategorized

DALLAS, Sept. 27, 2016 /PRNewswire/ — The Florida Department of Revenue (“Department”) issued guidance on the sale of custom software and cloud computing subscriptions. The taxpayer in question was in a partnership with a software provider, which allowed the taxpayer to license the provider’s basic software and sell it to its customers. Prior to selling the software to its clients, the taxpayer would generally customize it. Along with the custom software, the taxpayer also sold subscriptions to the software developer’s cloud service. Customers could only access the software remotely or by electronic means.

In keeping with prior guidance, the Department found that the taxpayer’s sales of software subscriptions and cloud computing services were not subject to Florida sales and use tax.  Furthermore, the Department also found that the taxpayer’s sale of electronically delivered custom software was also not subject to tax. However, the Department further explained that if any prepackaged or canned software was sold by way of a tangible medium, it would be subject to Florida sales and use tax.

The full analysis can be found in Florida Technical Assistance Advisement, No. 16A-014, August 8, 2016.

About Ryan
Ryan is an award-winning global tax services firm, with the largest indirect and property tax practices in North America and the seventh largest corporate tax practice in the United States. With global headquarters in Dallas, Texas, the Firm provides a comprehensive range of state, local, federal, and international tax advisory and consulting services on a multi-jurisdictional basis, including audit defense, tax recovery, credits and incentives, tax process improvement and automation, tax appeals, tax compliance, and strategic planning. Ryan is a five-time recipient of the International Service Excellence Award from the Customer Service Institute of America (CSIA) for its commitment to world-class client service. Empowered by the dynamic myRyan work environment, which is widely recognized as the most innovative in the tax services industry, Ryan’s multi-disciplinary team of more than 2,100 professionals and associates serves over 12,000 clients in more than 40 countries, including many of the world’s most prominent Global 5000 companies. More information about Ryan can be found at

Logo –


Jeremiah T. Lynch

Julie Moore

Available Topic Expert(s): For information on the listed expert(s), click appropriate link.
Jerry Lynch
ProfNet –