- New York tax opinion states cybersecurity services are taxable as protective services
- Businesses should evaluate how states classify new technology services for tax purposes
- Aprio’s SALT team offers help in determining taxability of services and can request specific state guidance
- Free consultations available to discuss state tax implications
- Security services, traditionally for physical protection, now include cybersecurity under taxable services in some states
- Managed Detection and Response service provider described in the ruling offers Network Security Monitoring Services and Professional Advisory Services
- NSMS is a subscription service that monitors and protects network assets without software installation
- PAS involves creating and managing cybersecurity policies, relying on data from NSMS
- New York law taxes protective services including those preventing unauthorized IT access
- Advisory Opinion confirms cybersecurity monitoring and protection as taxable services in New York
Source: aprio.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
