Extension of Due Date for First Reporting of Sales and Use Tax on Computer and Software Services

Breaking NewsThe MA Department of Revenue announces an extension of the first due date for the reporting and payment of sales and use taxes with respect to these services relating to computer system design and to modification, integration, enhancement, installation, or configuration of standardized or prewritten software. Pursuant to this extension, reporting and payment of these particular taxes that cover the period July 31, 2013 – September 30, 2013 should be reflected on the September return due on October 20, 2013. This extension is designed to minimize administrative burden on vendors during a period when the Legislature is likely to be considering repeal of these new tax provisions.

In Technical Information Release 13-14, the MA Department of Revenue cautions that this filing extension does NOT apply to returns and payments with respect to any other sales or use taxes that are unaffected by the recent law. Sales and use taxes remain fully due and payable on tangible personal property, which is defined to include transfers of the use or access to standardized or prewritten software (whether such software or the use thereof is transferred in tangible form, electronically, or in any other manner). Sales and use taxes also remain fully due and payable on taxable telecommunications services. Those returns for sales and use during August are generally due on September 20, 2013 and that filing date is unchanged.

If you have questions about this extension, please contact Gray, Gray & Gray’s Tax Department at (781) 407-0300.

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