Sales tax concerns if you sell through multiple channels
Businesses have new ways to sell today, as marketplaces such as Amazon, TikTok and the business’s...
Updated: December 2023
The taxability of SaaS for sales and use tax laws can be confusing to follow. Ensure you are up to date be utilizing this map!
While some services are ordinarily not subject to sales tax, the fact that they are provided in conjunction with SaaS can make them taxable. For example; Depending on the state, configuration, support, or training may be taxable when provided in conjunction with SaaS, even if they are separately stated on the invoice.
Technology companies involved in providing software, digital services and goods, SaaS, and more, have always found sales tax challenging–especially as it relates to defining the true object of the product/service relative to sales tax statutes. Additionally, the electronic delivery method of these products/services can create situsing challenges relative to sales tax jurisdictions and applicable rates.
In addition to the taxability rules state-by-state, there are additional nuances associated with SaaS within some states. This includes whether you are selling to a business or a consumer (as in Iowa, Maryland and Ohio), unique state sales tax rates (Connecticut), home-rule jurisdictions (Colorado and Illinois), partial exemptions (Texas), and more.
If you sell software, SaaS or digital services in multiple states, keeping on top of changing sales tax rules can be overwhelming. But not realizing your sales tax obligation or not acting on a growing obligation could have big repercussions for your business.
Understanding and complying with sales tax regulations for Software as a Service (SaaS) across different states can be challenging for tech companies. Our sales tax compliance services simplify this process, ensuring your business stays on track. We help you navigate complex and ever-changing tax rules, saving you time and resources while keeping you compliant. With our support, you can focus on what matters most—innovation and growth—while we handle the intricacies of sales tax compliance.
Businesses have new ways to sell today, as marketplaces such as Amazon, TikTok and the business’s...
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