Hawaiʻi's Technology Community
GE tax exemption for services exported out-of-state
Section 237-29.53, Hawaii Revised Statutes, provides an General Excise Tax exemption for services exported out of the State of Hawaii to be used outside of the state. You can have your customer fill out Form G-61 to certify that they have purchased your services for use outside of the state.
In my situation, I run a software-as-a-service (SAAS) company which provides web software to churches. Recently I wrote to the Hawaii tax office to ask whether it would be acceptable to take an online certification (without a signature) from out-of-state customers as part of the sign up process to capture the information of Form G-61. They responded saying that, yes, it is acceptable.
DISCLAIMER: Please do not take this as tax advice because I'm not a tax professional. I'm an software developer/entrepreneur. You should confirm this with a tax pro before acting on any information here. I just thought I'd pass this along in case it is helpful to someone here.
In my situation, I run a software-as-a-service (SAAS) company which provides web software to churches. Recently I wrote to the Hawaii tax office to ask whether it would be acceptable to take an online certification (without a signature) from out-of-state customers as part of the sign up process to capture the information of Form G-61. They responded saying that, yes, it is acceptable.
DISCLAIMER: Please do not take this as tax advice because I'm not a tax professional. I'm an software developer/entrepreneur. You should confirm this with a tax pro before acting on any information here. I just thought I'd pass this along in case it is helpful to someone here.
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Replies to This Discussion
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Permalink Reply by Daniel Leuck on
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Hi Truman - Thank you for posting this. I get conflicting advice in this area, even from tax professionals :-/
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Permalink Reply by John on
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Hi Truman,
Can you elaborate on this statement, "take an online certification (without a signature) from out-of-state customers as part of the sign up process to capture the information of Form G-61"?
Let's say I have 100 or 500 out-of-state customers. How does this work? Do I need one from each?
I am trying to understand the mechanics of how to implement this.
Best,
John -
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Permalink Reply by Truman Leung on
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As part of the signup process, you could take the customers address. Based on the state field, if the customer is NOT in Hawaii, then present the customer with a secondary page explaining in order for them to not be charged GET all they need to do is click a button which says they certify that they are not going to use the services you provide within the State of Hawaii. Then save this data in your company records. Take a look at Form G-61 to see what data needs to be captured.
So, yes, you need to do this for each out-of-state customer. -
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