On September 27, 2013, Massachusetts signed legislation to eliminate the sales and use tax on computer system design services and the modification, integration, enhancement, installation or configuration of standardized software. The repeal is effective retroactively to July 31, 2013. The tax was in effect less than two months.
Any vendor that failed to collect the tax will not be subject to penalties. Any vendor that did collect the tax is required to make reasonable efforts to return the tax to purchasers. Any tax paid during the less than two-month period in which the tax was in effect will be refunded. Abatement applications must be filed by December 31, 2013. Vendors may also electronically amend their returns to claim a refund, and then return those refunds to customers within 30 days of receipt.
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This advice is not intended or written to be used for, and it cannot be used for, the purpose of avoiding any federal tax penalties that may be imposed, or for promoting, marketing or recommending to another person, any tax related matter.