Some computer-related business activities may be subject to transaction privilege (sales)/use tax, such as:
- Selling of any product and/or itemizing product and labor separately on your invoice (State and local sales taxes may apply to parts sold when repairing computers.) Both computer hardware and software are subject to transaction privilege (sales) tax (TPT) under the retail classification. Computer hardware is considered goods sold to consumers or end users. Software is taxable when many people or companies use it. However, there is an exemption if the software is custom developed specifically for the use of only one person or business.
- Performing, coordinating or supervising construction work - such as repairing, improving, moving, wrecking, demolishing, or otherwise altering real property (Computer network cabling may be subject to state and local construction contracting "sales" tax on your gross receipts, including labor.)
- Renting tangible personal property to others, this includes cloud-based software, commonly referred to as software as a service (SaaS).
- Providing telecommunications services, such as providing Internet access, selling/renting space/sub-groups, service providers and ISP web hosting.
For more information, see Engaging in activities subject to transaction privilege (sales)/use tax.
If your service will include performing, coordinating or supervising construction work - such as repairing, improving, moving, wrecking, demolishing, or otherwise altering real property, including computer network cabling, you may need a contractor's license in addition to any other license requirements. For more information, see Construction/Construction-Related Activity - modifying real property. (19)
Arizona MacIntosh Users Group (AMUG): non-profit organization dedicated to the education and assistance of its members in the use of MacIntosh computers, iconic interfaces and related products.
Business Software Alliance (BSA): Educates computer users on software copyrights, advocates public policy that fosters innovation and expands trade opportunities, and fights software piracy. (888.667.4722)
The Arizona Technology Council: Statewide organization serving the technology sector and providing its member companies with marketing opportunities, educational events, and also creating business-focused legislation to enhance Arizona's business climate.