The Evolving Taxability of SaaS

Tangible personal property has historically been subject to the collection and remittance of sales tax while many services have been non-taxable (or exempt). More and more services are becoming taxable and represent a potential big wave of tax changes and updates in the years ahead.

If your business sells software or software-as-a-service (SaaS), you deal with one of the most complex sales tax situations today. Many businesses assume that sales tax doesn’t apply to software or to SaaS. But over the last few years many states, their eyes on potentially huge sources of tax revenue, started taxing technology, digital goods, software and SaaS. 

Source: taxconnex.com

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