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Multiple Points of Use: Applying for State Sales Tax Exemptions and Refunds

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Thursday, October 6, 2022

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This webinar will explain what products and services qualify for multiple points of use (MPU) reporting in specific states. Our panel of state and local tax experts will discuss appropriate and beneficial sourcing methods, applying for exemptions of MPU purchases, and the process of receiving refunds of prior sales tax paid in individual states.

Description

Software and information services can be delivered electronically or through the cloud. These products and services are often procured or hosted in one location for distribution and use throughout the U.S. An analysis of these purchases can provide significant sales and use tax savings, sometimes in retrospect. At least nine states offer some exemption for MPU purchases of software and digital services. The application of these exemptions varies significantly in each state.

Even after the purchase, opportunities exist for refunds of sales and use tax. Recently Massachusetts' Supreme Judicial Court ruled that corporations can apportion sales tax on software sold for multistate use and apply for retroactive refunds of amounts paid. (Oracle USA Inc. v. Commissioner of Revenue).

In response to this ruling, Technical Information Release (TIR) 22-8 was issued May 19, 2022, to guide the abatement of previously paid sales tax on MPU assets. Sales and use tax professionals must stay abreast of the latest guidance on MPU products and services to minimize sales and use tax paid by multistate companies.

Listen as our panel of indirect tax experts reviews multiple points of use allocations, exemptions, and refund opportunities available in specific states.

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Outline

  1. Multiple points of use (MPU): introduction
  2. Products and services qualifying for MPU exemptions
  3. Sourcing options
  4. State approaches to exemptions
  5. Applying for refunds
  6. Practical application in specific states
    1. Massachusetts
    2. New York
    3. Texas
    4. Washington
    5. Other states
  7. Best practices

Benefits

Our panel will review these and other critical issues:

  • Selecting beneficial and practical methods for sourcing MPU assets
  • Applying for a Massachusetts sales tax refund under TIR 22-8
  • Identifying products and services that qualify for MPU exemptions
  • Applying for a refund of previously paid MPU taxes in specific states

Faculty

Choi, Jin
Jin Choi
Director
Andersen Tax

Ms. Choi has over 16 years of multi-faceted tax experience providing State and Local Tax consulting services to...  |  Read More

Stephen, Christopher
Christopher Stephen
Director
Andersen Tax

Mr. Stephen has over 14 years of experience providing state and local tax services. His primary focus is sales and...  |  Read More

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