Sales Tax On Software Maintenance — Michigan

Specific charges for technical support or for adapting prewritten software to a user's needs are exempt if they are separately stated and identified on the invoice.

Always break out installation, support, and training charges from the software license fee to preserve exemptions. Michigan Sales Tax On Software Maintenance

Maintenance contracts for custom software (designed for a specific user's needs) are generally considered non-taxable services. Critical Factors and Exemptions Specific charges for technical support or for adapting

If an optional agreement for prewritten software includes future updates or "tangible deliverables" (like new code versions), it may become subject to tax . Michigan Sales Tax On Software Maintenance

If a maintenance agreement is required as part of the purchase of taxable prewritten software and includes future updates or enhancements, the entire cost is generally taxable . Optional Agreements: