- Taxability of Software as a Service (SaaS) is often misunderstood in sales tax arena
- Basic questions to determine taxability include nexus creation and product taxability
- Some states consider pre-written software tangible, while others exempt electronically downloaded software
- More than 20 states impose sales tax on SaaS revenue stream, while others do not
- Illinois does not tax SaaS revenue stream, but Chicago has its own tax on it
Source: taxconnections.com
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.
Latest Posts in "United States"
- Texas – New Law Modifies Definition of Video Service and Excludes Streaming Content
- Illinois – General Information Letter Comments on Taxability of GenAI Services Provided via Website or App
- Washington – DOR Provides Guidance on New Law Taxing Certain Advertising Services Beginning October 1
- Excise Taxes and Fees on Wireless Services Up Again in 2025
- Washington DOR Releases Q4 2025 Sales Tax Rates for Car Dealers and Lessors
