Hello illustrious readers!
Now that reality is back on track after 9 months of election stuff, I wanted to address something very important to all business. Software licensing and tax liability. While I am not a tax expert and cannot give you tax advice, I can speak to how things work on our end.
First, in California (and some other states) if you purchase software licensing without media/discs, you are not taxed on that order with the company you purchase it from. However, if you do purchase it with media, you are liable for sales tax across the entire order, not just tax on the media. It is worth noting that if you’ve bought software licensing this year with media and you didn’t pay tax on the entire order, the state will come calling to collect. Also, for those of us who like to think we’re tricky, you can’t order software on one order and the media on another one…that’ll be seen right through during the audit on the company you bought from, and you’ll be held liable for all of the tax on both the software and the media.
Best solution? Buy your software licenses without media. Nearly every company that provides licensing, also provides a secure site for downloading the software for it. Not only that, you can burn yourself as many copies as you need! While cases might differ from VAR to VAR, you need to keep an eye on your bottom line, so you aren’t hit with unexpected charges. 🙂
So why take a hit on what you don’t need to be taxed on? I think you’ll be pleasantly happy if you follow our suggestions! If you have any questions, you’re welcome to drop us a line on our contact page. Thank you!