Almost every US state requires sellers to charge sales tax on tangible personal property, also known as physical goods. Many states also implement sales and use tax on digital goods and SaaS offerings. Because the economy has shifted over time from a manufacturing economy to a service economy, states are now looking to generate revenue by enacting tax laws that make services taxable as well.
Here’s what merchants need to know about taxing services in Pennsylvania.
Source: taxjar.com
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