Sales of standardized software are taxed, regardless of whether the software is delivered electronically or in a physical format. Charges to access or use software on a remote server are also taxable. However, tax is not imposed on transactions where a customer isn’t charged for the use of software and the customer really intends to acquire goods or services other than software.
Go to Regulation 830 CMR 64H.1.3 for a detailed explanation as to when the sales of software are taxable.
Digital products other than software, such as music, video, and reading material are not subject to tax when delivered electronically.
Go to Abatement FAQs: Sales & Use Tax on Software Used in More than One State (PDF) for information about filing an abatement of sales and use tax paid on software, including how to apportion tax where software was purchased for use in more than one state.
