Section 280-RICR-20-70-46.7 - Computer SoftwareA. Prewritten computer software - The sale of prewritten computer software ("canned") delivered in tangible form is taxable including charges by the seller for any services (training, maintenance consultation etc.) necessary to complete the sale. However, installation labor separately stated is not subject to tax.B. Effective October 1, 2011, the sale of prewritten computer software, including application software, delivered electronically or by load and leave, is taxable including charges by the seller for any services (training, maintenance consultation etc.) necessary to complete the sale.C. When an agreement exists for a vendor to host software from their equipment and may be accessed by a customer, the transaction is not considered prewritten computer software delivered electronically and therefore is not subject to tax, provided there is no downloading of prewritten computer software.D. Modifications to prewritten computer software that are designed to make the software conform to a purchaser's specifications are not subject to tax, provided the charges are separately stated.E. Custom Software - The sale of custom software as defined above is not subject to tax. This includes any services incidental thereto and any modifications. If custom software sold to a single purchaser is later sold to others, the later sales are considered sales of prewritten software and are subject to tax.F. Specified digital products such as digital audio visual works, digital audio works, digital books, movies, music downloads, and ringtones which are delivered electronically, are not subject to tax, as they are not considered to be prewritten computer software.280 R.I. Code R. § 280-RICR-20-70-46.7