Earlier today, the Department of Revenue (DOR) published the last interim guidance statement (IGS) for ESSB 5814. The bill expands the sales tax to more services and goes into effect Oct. 1. (See our report on the tax package for more details.)

The final IGS covers custom software and the customization of prewritten software. As with the previously issued IGSs, custom software will be “subject to tax based on the location where the services are received by the purchaser and other default sourcing rules.”

Additionally, the licensing of custom software or the customization of prewritten software will be eligible for the multiple points of use (MPU) exemption if they meet other eligibility requirements and are not part of a bundled transaction (unless the price of the MPU-eligible product is separately identified).

The IGS also specifies that the sales tax will not apply to custom software and the customization of prewritten software sold between members of an affiliated group.

I wrote about the previously issued guidance statements here.