TaxOps.com
Tax News

Denver Sales and Use Tax for Software Sellers and Purchasers

Although Denver sales and use tax law pertaining to “data processing” has not changed since it was written into the tax code decades ago, tax audits by the city and county of Denver (Denver) are drawing heated media and industry attention. In addition, Denver recently updated its tax guide on data processing programs providing needed clarification on how the tax is applied in the software industry.

The tax guide demonstrates the wide net cast over software sales deemed taxable under Denver’s sales and use tax code. It also provides some principles upon which software companies can begin to base decisions on the collection and remittance of sales and use tax. But widespread misunderstanding exists due to the complex and vague language of the rules that fail to address current and evolving technologies, delivery systems and applications.

Partners from TaxOps recently met with the Boulder & Denver Software Clubs at the home office of Convercent in Denver to discuss the practical application of the tax code and concerns over Denver’s aggressive stance on sales and use tax. Download Denver Sales and Use Tax for Software Sellers and Purchasers for a recap of the spirited discussion.

Denver Sales and Use Tax for Software Sellers and Purchasers Denver Sales and Use Tax for Software Sellers and Purchasers (240 KB)