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Florida Sales Tax on Post-delivery Software Upgrades (battery capacity unlock, AP, FSD, etc.)

GeekLad

Member
Apr 27, 2014
81
16
Fort Lauderdale, FL
Does anyone know if sales tax is applied to software upgrades purchased after taking delivery? If sales tax isn't applied, that helps to absorb a bit of the post-delivery upcharge on software upgrades.
 

jbcarioca

Well-Known Member
Supporting Member
Feb 3, 2015
5,628
29,936
There probably is tax today.
When I upgraded my car to LTE and later to P85D there was no tax applied to either transaction. That was more than two years ago. I'm guessing that was an early error rather than an intentional exclusion, but I do not know that for sure.
 

GeekLad

Member
Apr 27, 2014
81
16
Fort Lauderdale, FL
There probably is tax today.
When I upgraded my car to LTE and later to P85D there was no tax applied to either transaction. That was more than two years ago. I'm guessing that was an early error rather than an intentional exclusion, but I do not know that for sure.

Yeah, I would think the LTE upgrade should have included sales tax for the hardware at least. There probably was an unintentional omission.

I don't think so, provided the updates are downloaded via the cloud - see the article in the attached link:


Florida ~ Sales and Use Tax: Sales of Subscriptions to Software and Cloud Computing Services Are Not Subject to Tax - Tax & Accounting Blog

They're referring to things like SaaS, PaaS, IaaS (Software, Platform, Infrastructure as a Service), which are typically charged as regular subscription service fees. Software updates to Tesla vehicles aren't subscriptions, it's a one-time download/installation of software, so I don't think what they're describing in that article would apply.
 
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jbcarioca

Well-Known Member
Supporting Member
Feb 3, 2015
5,628
29,936
Yeah, I would think the LTE upgrade should have included sales tax for the hardware at least. There probably was an unintentional omission.



They're referring to things like SaaS, PaaS, IaaS (Software, Platform, Infrastructure as a Service), which are typically charged as regular subscription service fees. Software updates to Tesla vehicles aren't subscriptions, it's a one-time download/installation of software, so I don't think what they're describing in that article would apply.
That is one ambiguous field for Tesla. However both the Ludicrous and LTE were physical installations, although it is plausible that both were installations in support of SaaS or PaaS, in which case the non-cloud aspects would still seem to be taxable. There may be additional exemptions that are not in that statute but I think @GoCanes is correct and that @GeekLad probably is too. After all, both of my examples would have been taxable had they been ordered as options prior to delivery.
 

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