Virginia Senate’s Amendment to to include all B2B digital service Could Hurt State’s Competitiveness

• Virginia Senate amended the Governor’s budget bill to include all B2B digital services in the sales tax base
• Governor’s plan originally excluded B2B digital service transactions from sales tax base
• Senate’s amendment could increase revenues from taxation of digital services and negatively impact businesses and consumers
• Taxing business inputs can cause economic distortions, nonneutral tax burdens, regressivity, and disguise true cost of government

Source: taxfoundation.org

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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