Sales tax is applicable to prewritten software, which is defined as software that is sold to the general public and is not specifically created for a particular client. This covers applications that are downloaded, set up, or accessed remotely. However, the software might not be subject to sales tax if it is bought to be resold or included in a product that is being sold.
If you often buy software for your company or yourself, you might be asking how to get tax-exempt status in West Virginia. The state provides a number of options for obtaining sales tax exemption. A tax exemption certificate from the West Virginia State Tax Department is one option. With the use of this certificate, qualified companies and organizations can buy products and services without paying sales tax. You need to be a tax-exempt organization, such a non-profit, a place of worship, or an educational institution, to be qualified.
Getting a resale certificate is another option to avoid paying sales tax. With the use of this certificate, firms can buy products and services to resell without having to pay sales tax. Businesses must register with the West Virginia State Tax Department and submit supporting documentation, such as a sales tax license and a business license, in order to get a resale certificate.
And finally, you might be curious in what goods are excluded from West Virginia’s sales tax. The state grants a number of exclusions, including those for prescription medications, certain medical equipment, and food for domestic consumption. Additionally, some services, including legal and educational services, may not be subject to sales tax.
In conclusion, there are a number variables that determine whether or not software is taxable in West Virginia, but in general, prewritten software is taxable. However, by getting a tax exemption or resale certificate, organizations and people in West Virginia can become tax free. West Virginia also provides a number tax exclusions for particular goods and services. Visit the West Virginia State Tax Department website for more details on the state’s sales tax.