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 7 percent use tax. For more information, including details about registering and collecting the tax, and paying the tax, click here.
