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Cloud Computing in Vermont: Clarification Required


 Is a storm brewing over Vermont's cloud computing tax?

Cloud computing services became subject to Vermont sales tax on July 1, 2013, after a lengthy moratorium on the tax and even lengthier debate. Yet confusion persists, as does doubt over the tax. This spring, a proposal to exempt cloud computing services resurfaced.

The fact sheet on the taxability of prewritten software accessed remotely expired on June 30, 2014, and is no longer in effect. A technical bulletin (#54) on the topic has been withdrawn. Now the Vermont Department of Taxes is soliciting comments on draft regulatory language, with an eye toward “resolving possible gray areas in the application of the tax.” Comments will be accepted until October 1, 2014. They should be sent to the Commissioner’s Office by email (tax.commissioner@state.vt.us) or phone (802-828-3763).

Some, if not all, of the proposed changes to the regulatory language will undoubtedly be adopted. Interested parties are advised to “check this webpage periodically for updated information.”

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.