Thursday, October 25, 2007

Definitions

When you are doing your research, beware of the meanings of words. I had an interesting conversation this week with a seminar participant who was having a tough time finding information on the taxability of software subscriptions. Initially, I was having a tough time understanding what he was driving at. Then I realized he was talking about software maintenance contracts.

I gathered this was what his company called the product, and he assumed that everyone called it that.

So if you're having a tough time finding the answers, keep in mind that the thing you're looking for may have a different name. And if you're talking about technical jargon, the legal terminology may not have caught up. For example, you'll often see the term electronically transmitted software, when what everyone means is downloaded software.

Take a deep breath, keep an open mind, and experiment.

Sales Tax Guy

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