News feed

Sales tax and VAT updates for modern finance teams

Anrok’s team of tax experts shares the latest rate changes, taxability updates, and other news you need to know.

Kentucky

Kentucky clarifies AI software is taxable as prewritten software

January 22, 2026

The Kentucky Department of Revenue issued guidance confirming that artificial intelligence software is classified as prewritten computer software for sales tax purposes. The ruling states that AI's ability to alter responses or generate output based on user data does not qualify it as custom software. All AI software applications must be treated according to Kentucky's existing definition of taxable prewritten computer software.

The bottom line:
Businesses selling AI-powered applications, machine learning tools, or any software with adaptive capabilities should treat these products as taxable prewritten software in Kentucky. The state's position is clear: self-learning or adaptive features do not convert prewritten software into custom software for tax purposes.

Dashboard showing jurisdictions overview with activity by country and exposed sales on a world map.

Automated compliance for every type of sale

Anrok applies the correct tax treatment to every customer type and validates VAT IDs in real time.
Three coworkers, two men and a woman, looking at a computer screen in an office setting.

Filing and remittance across borders

Anrok files and remits tax in every jurisdiction where you owe it, including e-invoicing, backed by dedicated tax experts.
List showing Texas Approaching, Colorado Remitting, Chicago Exposed with labels Jake and Ruby.

One source of truth for your tax exposure

Anrok tracks your tax exposure across countries and alerts you before you cross registration thresholds.

Let Anrok manage tax.
Book a 30-minute demo with an expert.