[Ritaxpronews] Rhode Island Division of Taxation -- new law

[Downing, Neil (DOR)]

The Rhode Island Division of Taxation reminds businesses, software providers, and others that a new tax law will take effect on Monday, October 1, 2018.



That is when vendor-hosted prewritten computer software, sometimes referred to as "software as a service", or SaaS, will become subject to Rhode Island's 7 percent sales and use tax.



Vendors must register with the Rhode Island Division of Taxation, obtain a sales tax permit, and collect and remit the 7 percent tax. If sales/use tax is not collected on the transaction, the buyer --

whether a business or consumer -- must pay the tax. For more information, please use the following link:



http://www.tax.ri.gov/Advisory/ADV_2018_38.pdf



Thank you.


Neil Downing
Chief Revenue Agent
Rhode Island Division of Taxation
One Capitol Hill
Providence, R.I. 02908

Email: Neil.Downing at tax.ri.gov<mailto:Neil.Downing at tax.ri.gov>
Phone: (401) 574-8115

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