Economic nexus thresholds have become standard procedure for most U.S. states, but the taxability of software and digital products continues to vary across taxing jurisdictions.
Software and digital goods suppliers understandably have questions about sales tax. Where do my digital products or software have special tax treatment? How do I handle sales tax with bundled products? Should I consider the delivery method when applying sales tax rates?
Businesses selling software or digital products cannot afford to keep sales tax as an afterthought. Understanding the right questions to ask about sales tax and how it applies to software and digital goods will ensure organizations can better gauge any potential tax liability.
Source: SOVOS
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