In addition to selling automated solutions, software-as-a-service (SaaS) companies often provide a variety of related services, including configuration, implementation, training, testing, bug fixes, technical support, and software enhancements. Each of these services could have sales tax consequences different from those applicable to the underlying software. Even more challenging, the rules can sometimes vary based on the context surrounding how that ancillary service is provided. So how can SaaS organizations keep everything straight? What must remain top of mind when it comes to ensuring the right sales tax is applied to products – and services?
We have highlighted three key things for software companies to keep in mind when it comes to evaluating the accuracy of their sales tax compliance.
Source: sovos.com
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