W. Va. Code R. § 110-15-76

Current through Register Vol. XLI, No. 50, December 13, 2024

Section 110-15-76 - Electronic Data Processing Services and Related Software

76.1. Sales of electronic data processing services and related software to others are exempt from consumers sales and service tax and/or use tax. For purposes of this exemption, electronic data processing services means

(1) the processing of another's data, including all processing such as key punching, keystroke verification, rearranging, or sorting of previously documented data for the purpose of data entry or automatic processing, and changing the medium on which data is sorted; and

(2) providing access to computer equipment for the purpose of processing data or examining or acquiring data stored in or accessible to such computer equipment.

76.1.1. It is necessary to determine the nature of what is being purchased by the customer. For example, where a completely computerized billing service actually prints and mails the bills based on information provided by the client, receives collectibles and records the payments received, the service is taxable. The fact that a computer is utilized does not result in the service being exempt.

76.1.2. The purchase by customers of specialized computer software which allows the customers terminals to communicate directly with a central processing unit of another is exempt if that is the only use of such software.

76.1.3. The purchase of other software which merely provides information to assist the customer in making business decisions is taxable.

76.2. Purchases for use in rendering electronic data processing services for others and the purchase of related software are taxable, except for purchases for resale, for which an exemption certificate may be issued.

W. Va. Code R. § 110-15-76