Arkansas Sales Tax on Software and Digital Products Arkansas: Sales Tax Handbook

Arkansas:

Are Software and Digital Products subject to sales tax?

While Arkansas' sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of software and digital products in Arkansas, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in Arkansas.


Canned Software - Delivered on Tangible Media
TAXABLE
Sales of canned software - delivered on tangible media are subject to sales tax in Arkansas.

Canned Software - Downloaded
EXEMPT
In the state of Arkansas, any software which will be delivered electronically or by the """"load and leave"""" method is not considered to be taxable.

Custom Software - Delivered on Tangible Media
TAXABLE
Sales of custom software - delivered on tangible media are subject to sales tax in Arkansas.

Custom Software - Downloaded
EXEMPT
In the state of Arkansas, any of the software which was delivered electronically or by the """"load and leave"""" method, is not considered to be taxable.

Customization of Canned Software
EXEMPT
In the state of Arkansas, any modification or enhancement of canned software might be considered to be an exempt programming service so long as a reasonable, separate charge given to a buyer.

Digital Products
EXEMPT
In the state of Arkansas, some types of subscriptions for broadcasting services which are sold in digital format are considered to be taxable.



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Source: http://www.salestaxhandbook.com/arkansas/sales-tax-taxability/software-and-digital-products