<html xmlns:v="urn:schemas-microsoft-com:vml" xmlns:o="urn:schemas-microsoft-com:office:office" xmlns:w="urn:schemas-microsoft-com:office:word" xmlns:dt="uuid:C2F41010-65B3-11d1-A29F-00AA00C14882" xmlns:b="urn:schemas-microsoft-com:office:publisher" xmlns:m="http://schemas.microsoft.com/office/2004/12/omml" xmlns="http://www.w3.org/TR/REC-html40">
<head>
<meta http-equiv="Content-Type" content="text/html; charset=us-ascii">
<meta name="Generator" content="Microsoft Word 15 (filtered medium)">
<style><!--
/* Font Definitions */
@font-face
{font-family:"Cambria Math";
panose-1:2 4 5 3 5 4 6 3 2 4;}
@font-face
{font-family:Calibri;
panose-1:2 15 5 2 2 2 4 3 2 4;}
@font-face
{font-family:Verdana;
panose-1:2 11 6 4 3 5 4 4 2 4;}
/* Style Definitions */
p.MsoNormal, li.MsoNormal, div.MsoNormal
{margin:0in;
margin-bottom:.0001pt;
font-size:11.0pt;
font-family:"Calibri",sans-serif;}
a:link, span.MsoHyperlink
{mso-style-priority:99;
color:#0563C1;
text-decoration:underline;}
a:visited, span.MsoHyperlinkFollowed
{mso-style-priority:99;
color:#954F72;
text-decoration:underline;}
span.EmailStyle17
{mso-style-type:personal-compose;
font-family:"Verdana",sans-serif;
color:windowtext;
font-weight:normal;
font-style:normal;
text-decoration:none none;}
.MsoChpDefault
{mso-style-type:export-only;
font-family:"Calibri",sans-serif;}
@page WordSection1
{size:8.5in 11.0in;
margin:1.0in 1.0in 1.0in 1.0in;}
div.WordSection1
{page:WordSection1;}
--></style><!--[if gte mso 9]><xml>
<o:shapedefaults v:ext="edit" spidmax="1026" />
</xml><![endif]--><!--[if gte mso 9]><xml>
<o:shapelayout v:ext="edit">
<o:idmap v:ext="edit" data="1" />
</o:shapelayout></xml><![endif]-->
</head>
<body lang="EN-US" link="#0563C1" vlink="#954F72">
<div class="WordSection1">
<p style="margin:0in;margin-bottom:.0001pt"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">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.<o:p></o:p></span></font></p>
<p style="margin:0in;margin-bottom:.0001pt;font-variant-ligatures: normal;font-variant-caps: normal;orphans: 2;text-align:start;widows: 2;-webkit-text-stroke-width: 0px;text-decoration-style: initial;text-decoration-color: initial;word-spacing:0px">
<font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p style="margin:0in;margin-bottom:.0001pt;font-variant-ligatures: normal;font-variant-caps: normal;orphans: 2;text-align:start;widows: 2;-webkit-text-stroke-width: 0px;text-decoration-style: initial;text-decoration-color: initial;word-spacing:0px">
<font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">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.<o:p></o:p></span></font></p>
<p style="margin:0in;margin-bottom:.0001pt;font-variant-ligatures: normal;font-variant-caps: normal;orphans: 2;text-align:start;widows: 2;-webkit-text-stroke-width: 0px;text-decoration-style: initial;text-decoration-color: initial;word-spacing:0px">
<font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p style="margin:0in;margin-bottom:.0001pt;font-variant-ligatures: normal;font-variant-caps: normal;orphans: 2;text-align:start;widows: 2;-webkit-text-stroke-width: 0px;text-decoration-style: initial;text-decoration-color: initial;word-spacing:0px">
<font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">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 -- <o:p></o:p></span></font></p>
<p style="margin:0in;margin-bottom:.0001pt;font-variant-ligatures: normal;font-variant-caps: normal;orphans: 2;text-align:start;widows: 2;-webkit-text-stroke-width: 0px;text-decoration-style: initial;text-decoration-color: initial;word-spacing:0px">
<font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">whether a business or consumer -- must pay the tax. For more information, please use the following link:<o:p></o:p></span></font></p>
<p style="margin:0in;margin-bottom:.0001pt"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p style="margin:0in;margin-bottom:.0001pt"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><a href="http://www.tax.ri.gov/Advisory/ADV_2018_38.pdf">http://www.tax.ri.gov/Advisory/ADV_2018_38.pdf</a><o:p></o:p></span></font></p>
<p style="margin:0in;margin-bottom:.0001pt"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p style="margin:0in;margin-bottom:.0001pt"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black">Thank you.<o:p></o:p></span></font></p>
<p style="margin:0in;margin-bottom:.0001pt"><font size="3" color="black" face="Verdana"><span style="font-size:12.0pt;font-family:"Verdana",sans-serif;color:black"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="4" color="#2f5496" face="Calibri"><span style="font-size:14.0pt;font-variant:small-caps;color:#2F5496">Neil Downing<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496">Chief Revenue Agent<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496">Rhode Island Division of Taxation<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496">One Capitol Hill<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496">Providence, R.I. 02908<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496"><o:p> </o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496">Email:
<a href="mailto:Neil.Downing@tax.ri.gov"><font color="#2f5496"><span style="color:#2F5496">Neil.Downing@tax.ri.gov</span></font></a><o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" color="#2f5496" face="Calibri"><span style="font-size:11.0pt;font-variant:small-caps;color:#2F5496">Phone: (401) 574-8115<o:p></o:p></span></font></p>
<p class="MsoNormal"><font size="2" face="Calibri"><span style="font-size:11.0pt"><o:p> </o:p></span></font></p>
</div>
</body>
</html>