Wyoming Computer, Software, and SaaS Tax Guide

Prepared by Sales Tax Helper

Table of Contents

1. Introduction
2. Nexus Considerations
3. General Rules and Compliance Considerations
4. Specific Exemptions
5. Sourcing Rules
6. Audit Considerations
7. Voluntary Disclosure Agreements (VDAs)
8. Conclusion
9. References & Resources

1. Introduction

Operating a software, SaaS, or technology business in Wyoming requires careful navigation of
the state’s nuanced sales and use tax rules. Unlike some states that apply a uniform approach to
digital products and cloud-based services, Wyoming differentiates between prewritten (canned)
software, custom software, and various technology services based on factors such as method of
delivery and level of customization. The tax treatment of software and technology-related
services in Wyoming depends on whether software is delivered in tangible or electronic form,
whether it is prewritten or custom, and whether services are categorized as taxable repairs or
exempt professional services.
Purpose of This Guide
This guide is designed to help businesses navigate Wyoming's sales and use tax rules related to
software and technology services. It focuses on:
 Nexus Considerations: Understanding when businesses must register and collect
Wyoming sales tax due to physical or economic presence.
 Taxability of Software & Services: Clarifying the tax treatment of prewritten vs. custom
software, cloud computing services, and related technology offerings.
 Sourcing Rules: Determining how and where transactions are taxed based on customer
location and method of software delivery.
 Audit Considerations: Identifying common tax audit triggers and best practices for
compliance.
 Voluntary Disclosure Agreements (VDAs): Explaining the process for businesses to
rectify past noncompliance while mitigating penalties and limiting back-tax liability.

Why This Matters for Technology Companies
Wyoming's sales tax laws impact software companies, SaaS providers, and technology firms in
multiple ways:

• Sales Tax Obligations: Businesses that sell software or related services to Wyoming
  customers may have a duty to collect and remit Wyoming sales tax, depending on how
  the product is classified.
• Cloud Computing & SaaS Complexity: Wyoming does not impose sales tax on SaaS,
  IaaS, or PaaS when delivered through cloud computing models, but misclassification of
  transactions can lead to tax liabilities.
• Compliance Risks: Failure to correctly assess and collect sales tax can result in
  significant penalties, interest, and extended audit exposure.

This guide will walk through Wyoming's specific sales tax rules governing software, SaaS, and
technology-related services while referencing applicable statutes, administrative rules, and
Wyoming Department of Revenue guidance. Throughout the guide, official Wyoming
Department of Revenue sources will be linked for further reference.

For additional educational materials, visit the Wyoming Department of Revenue Educational
Materials and the New Vendor Packets.

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