In Florida, modified, prepackaged software sold as a single transaction is not subject to tax

If canned software is customized and then sold to a customer in Florida as part of the same transaction then the entire charge is exempt as a professional service. However, if the canned software is sold and then a separate transaction between the same parties provides for the customization of the software, the sale of the canned software would be taxable. (Technical Assistance Advisement, No. 04A1-021, March 24, 2004.)

Posted on June 15, 2004