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.
Rhode Island taxes AI-generated reports as vendor-hosted software
The Rhode Island Tax Division ruled in a declaratory ruling that AI-generated reports delivered through an online dashboard are taxable as vendor-hosted prewritten computer software. Under R.I. Gen. Laws § 44-18-7.1(g)(vii), the Tax Administrator found that customers buy access to vendor-hosted software when they submit questionnaire information through the platform and receive AI-generated reports back. The Division held that customizing each report does not change the tax treatment, since customers still access the underlying software through the hosted platform. Sales to Rhode Island customers are subject to the state’s 7% sales and use tax. The Division declined to address other delivery methods that were not part of the taxpayer’s request.
The bottom line: The ruling is in effect. If you sell AI-generated reports or similar outputs through a hosted platform to Rhode Island customers, you should review whether your product fits this definition and collect the 7% tax where it does. This follows Rhode Island’s earlier ruling on genealogical and health history reports, which also treated online report access as vendor-hosted software.
Features

Automated compliance for every type of sale

Filing and remittance across borders

One source of truth for your tax exposure
One platform for all your global tax needs
Let Anrok manage tax.
Book a 30-minute demo with an expert.