- 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"
- Streamlined Sales Tax: Simplifying Multistate Sales Tax Compliance for US Businesses
- State-by-State Guide to Sales Tax Exemption Certificates: Eligibility, Filing, and Renewal Tips
- Detroit Considers 1% City Sales Tax to Raise $72 Million Annually
- U.S. Imposes Targeted Semiconductor Tariffs to Strengthen National and Economic Security
- Colorado Local Sales and Use Tax Rate Changes Effective January 1, 2026: Key Updates and Impacts
