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Daily Tax Report: State

Virginia Tax Commissioner Determines DOT Correctly Denied Use Tax Refund on Software Support Services

April 7, 2020, 5:00 AM

The Virginia Tax Commissioner Jan. 21 determined in a letter ruling that the Department of Taxation (DOT) correctly denied Taxpayer’s use tax refund requests with respect to software support and maintenance charges. Taxpayer sought the refunds on the ground that the exemption applied for electronically delivered software services not involving an exchange of tangible personal property. The DOT concluded that there was insufficient information to support issuing the refunds. Taxpayer appealed. The commissioner noted that: 1) a sales invoice, contract, or other sales agreement must explicitly certify the electronic delivery of the software and that no tangible medium was provided...

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