Sales and Use Taxes: Cloud Computing (Portfolio 1380)

Description

Bloomberg Tax Portfolio, Sales and Use Taxes: Cloud Computing, No. 1380 discusses the application of sales and use taxes to cloud computing transactions. The Portfolio discusses the various cloud computing models that have been developed and are now utilized to serve the needs of businesses on a global scale, and the approaches states are taking to apply sales and use tax to the different models.

The Portfolio includes analysis of sourcing issues that arise for cloud computing vendors and users, and the applicable Streamlined Sales and Use Tax Agreement guidance. Further, the Portfolio reviews the nexus considerations for cloud computing vendors and purchasers. This Portfolio also discusses important aspects of states’ definitions and characterizations of software, digital products, and information and telecommunications services, and provides in-depth analysis for the application of tax to transactions under the SaaS, PaaS, and IaaS cloud computing models. Finally, the Portfolio addresses bundled transactions, and best practices for drafting service agreements for cloud computing.

Additional Portfolios providing detailed information on specific sales and use tax topics include 1320 T.M., Sales and Use Taxes: Information Services, 1350 T.M., Sales and Use Taxes: Communications Services and Electronic Commerce, and 1300-2nd T.M., Sales and Use Taxes: General Principles. For additional relevant Bloomberg Tax Portfolios consult the Portfolio Classification Guide.

Subscribers to the Internet version of the Portfolio will find late-breaking developments reported in the Bloomberg Tax Daily Tax Report – State.

This Portfolio may be cited as Kranz and Nebergall, 1380 T.M., Sales and Use Taxes: Cloud Computing.

Table of Contents

1380.01. INTRODUCTION
1380.02. DEFINITION OF ‘CLOUD COMPUTING’
1380.03. BASIC SERVICE AND DEPLOYMENT MODELS OF CLOUD COMPUTING
1380.05. STATE SALES AND USE TREATMENT OF SAAS, PAAS AND IAAS TRANSACTIONS
1380.06. BEST PRACTICES FOR DRAFTING SERVICE AGREEMENTS AND FEE ARRANGEMENTS