Sales tax laws in the United States can be complex and challenging to navigate, particularly when determining the taxability of products and services.
The distinction between tangible personal property (TPP) and services is critical in determining the taxability of items subject to sales tax. TPP is generally subject to sales tax, whereas services are often not.
The rise of digital products (not easily classified as TPP or services) and a shift towards a service-based economy has created a sea change in state rules on taxability. This has made determining the taxability of many products and services increasingly complex.
This article will explore the challenges related to the taxability of tangible personal property and services in the US.
Table of Contents
- I. Taxability of tangible personal property (TPP)
- Digital products
- Computer software
- II. Taxability of Services
Source: www.fonoa.com
