Indiana DOR Finds Taxpayer Entitled to Partial Sales Tax Refund for Purchases of Software Services (Decision 3 of 4)

The Indiana Department of Revenue (DOR) May 3 found that Taxpayer, a state-based company, was entitled to a partial refund of sales and use tax paid on software purchase transactions. Taxpayer claimed the refund for taxes paid on transactions for the acquisition or use of prewritten computer software. The DOR denied the refund stating that software as a service was considered taxable. Taxpayer protested. The DOR noted: 1) Taxpayer’s transactions before July 1, 2018, weren’t subject to sales tax because the transactions called for the provision of software services and granted Taxpayer no possessory interest in the underlying pre-written software; ...