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The fact sheet on the taxability of prewritten software accessed remotely expired on June 30, 2014, and is no longer in effect. A technical bulletin (#54) on the topic has been withdrawn.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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