How cloud computing providers can weather the on-going tax storm
In this TIP on Tax article, Joel Waterfield and Steve Skiba, Directors of State and Local Tax Services at Grant Thornton LLP, provide tips for providers on navigating the various tax regulations related to the cloud, many of which have not been updated since authorities considered taxing electronic downloads more than a decade ago. They also offer some specific business and contracting suggestions to help avoid unpleasant tax surprises.
This article's key takeaways include:
- We expect that tax guidance on cloud transactions will increase in the near term, but we are probably still a few years away from seeing the laws codified that will become the norm for these types of transactions.
- Cloud providers must take a new look at areas of potential risk, such as nexus, points of origin and delivery and transaction details.
- Contracts and documents must be amended to show details of each agreement and what is being provided.
For more information, please contact the authors:
Joel Waterfield
Director, State and Local Tax Services
T 703.847.7595
E joel.waterfield@us.gt.com
Steve Skiba
Director, State and Local Tax Services
T 248.213.4265
E steve.skiba@us.gt.com
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