The charge for a customized software package is construed to be a service and is not subject to tax. Retail sales of prepackaged software sold in a tangible form, where the programs are fully useable by the customer without modifications, are taxable as sales of tangible personal property. However, where the vendor, at the customer’s request, modifies or alters a prepackaged program to the customer’s specification and charges the customer for a single transaction, the charge is for a customized software package and is not subject to tax.
Rulemaking Authority Florida Statutes § 212.18(2), 213.06(1) FS. Law Implemented 212.05(1)(a), 212.08(7)(v) FS. History-New 12-11-74, Amended 5-10-77, 6-29-80, Formerly 12A-1.32, Amended 8-15-21.