United States of America: Illinois Department of Revenue rules bundled hardware and software subscription is subject to Service Occupation Tax
Description
Illinois Department of Revenue rules bundled hardware and software subscription is subject to Service Occupation Tax
Following an information request dated 3 June 2021, the Illinois Department of Revenue ruled that out-of-state taxpayers providing all-in-one software subscriptions and related hardware were to be subjected to the Service Occupation Tax and not the Retailers’ Occupation Tax, Use Tax, or Service Use Tax.
Original sourceScope
Policy Area
Taxation
Policy Instrument
Taxation, nes
Regulated Economic Activity
software provider: other software
Implementation Level
subnational
Government Branch
executive
Government Body
tax authority
Key regulatory dimensions
Regulated subjects
The businesses, government agencies or individuals affected by this policy or regulatory change.
producer / supplier
1
Type
Private organisation
Economic activity
platform intermediary: user-generated content,other service provider,technological consumer goods
Category
All
Policy change by business practice
The detailed activities within the scope of this policy or regulatory change.
software (any type): rental or lease
Regulatory tool
Subordination under other existing tax
Sanctions
TBR - Existing statutory sanction
Regulated subjects
1
software (any type): sale
Regulatory tool
Subordination under other existing tax
Sanctions
TBR - Existing statutory sanction
Regulated subjects
1