Utah Admin. Code R865-19S-92 - Computer Software and Other Related Transactions Pursuant to Utah Code Ann. Sections 59-12-103 and 59-12-211
(1) "Computer-generated output" means the
microfiche, microfilm, paper, discs, tapes, molds, or other tangible personal
property generated by a computer.
(2) The sale, rental or lease of custom
computer software constitutes a sale of personal services and is not subject to
the sales or use tax, regardless of the form in which the software is purchased
or transferred. Charges for services such as software maintenance, consultation
in connection with a sale or lease, enhancements, or upgrading of custom
software are not taxable.
(3) The
sale of computer -generated output is subject to the sales or use tax if the
primary object of the sale is the output and not the services rendered in
producing the output.
(4)
(a) The provisions for determining the
location of a transaction under Subsection (4)(b) apply if:
(i) a purchaser uses computer
software;
(ii) there is not a
transfer of a copy of the computer software to the purchaser; and
(iii) the purchaser uses the computer
software at more than one location.
(b) The location of a transaction described
in Subsection (4)(a) is:
(i) if the seller is
required to collect and remit tax to the commission for the purchase, and the
purchaser provides the seller at the time of purchase a reasonable and
consistent method for allocating the purchase to multiple locations, the
location determined by applying that reasonable and consistent method of
allocation; or
(ii) if the seller
is required to collect and remit tax to the commission for the purchase, and
the seller does not receive information described in Subsection (4)(b)(i) from
the purchaser at the time of the purchase, the location determined in
accordance with Subsections
59-12-211(4) and (5); or
(iii) if the purchaser accrues and remits
sales tax to the commission for the purchase, the location determined:
(A) by applying a reasonable and consistent
method of allocation; or
(B) in
accordance with Subsections
59-12-211(4) and (5).
Notes
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