Sales Tax Articles
Sales Tax State Activity Update - August 2006
Computer Consulting Services Exempt in Florida
The Florida Department of Revenue ruled in a Technical Assistance Advisement (TAA) that computer consulting services are not subject to tax as long as there has been no exchange of tangible personal property as out lined in Chapter 212, F.S.
Background
The Taxpayer entered into an agreement with a consultant which stipulated the purpose of the engagement was to determine which parts of the computer software systems are considered ‘Quality Impacted' and to ensure that the software and supporting procedures conform to the FDA 21CFR Part 11 statutes for Electronic Records Electronic Signatures retention.
Advisement
Services, except those authorized by Chapter 212, F.S., are generally not subject to tax unless they are provided in conjunction with the sale of tangible personal property. Therefore, the agreement only required consulting services to be rendered. Given no tangible personal property was provided to Taxpayer, the services are exempt from Florida sales and use tax.
View the full text on the Florida Department of Revenue website.
((TAA No. 06A-011, Florida Department of Revenue, May 22, 2006)
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