With Software as a Service (SaaS) emerging as the preferred method of delivery for software, the issues surrounding taxation of this leading edge technology are becoming more complex. Gray, Gray & Gray has the experience and resources necessary to assist SaaS developers and providers in navigating multiple tax jurisdictions and changes in revenue recognition rules helping you build an advantageous tax strategy while complying with federal, state, local, and foreign tax authorities.
Software can be placed into one of three categories: tangible software, downloaded software, and software accessed via the cloud. Tangible software is a product sold to a customer, either in a retail setting or ordered online and delivered, such as software delivered on a CD. Downloaded software refers to a software license that allows a customer to download a program directly to their local hard drive. Software accessed via the cloud is the newest classification and includes SaaS products which a customer accesses over an Internet connection.