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the taxation of software as a service or SAS is complex for a number of reasons software as a service is accessed remotely and there is no transfer of tangible personal property while some states consider software as a service to be canned or pre-written software accessed remotely other states view it as a service for these reasons and others it is an understatement to say that the imposition of state sales and use tax on software as a service is complicated let's take a look at how a few States treat software as a service effective July 1st 2024 Vermont repealed its sales and use tax exemption for pre-written computer software accessed remotely otherwise known as software as a service or Cloud software Vermont imposed its 6% state sales and use tax on sales of such programs the repeal of the exemption primarily applies sales and use tax to software as a service or SAS Cloud applications to do this Vermont amended the definition of tangible personal property to include pre-writ

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