Tax Type
Retail Sales and Use Tax
Description
Computer software
Topic
Taxability of Persons and Transactions
Date Issued
07-27-1984
July 27, 1984
Re: § 58-1118 Application/Sales and Use Tax
Dear **************
This responds to your letter of April 20, 1984, applying for relief from assessments of sales and use tax for the audit period of March 1, 1978 through June 30, 1979. Specifically, you are contesting application of the tax to sales of software. The present position of the department being that all software, whether prewritten, modified, or custom is taxable. We are unable to provide you relief from the assessment.
A regulation of the tax on software has been proposed under the Virginia Administrative Process Act. If the proposal is adopted as currently drafted, it may provide you with relief with regards to custom software, but not pre-written or modified software. At the present time, however, you are required to pay the assessment.
Sincerely,
W. H. Forst
State Tax Commissioner
Rulings of the Tax Commissioner