Expanding US Sales Tax: Adapting to Digital Goods, Services, and the Evolving Economy

• The US lacks a broad national consumption tax, relying instead on state-level sales taxes with varying rules.
• States are expanding sales tax bases to include digital goods and services due to shifts in consumption and declining revenues.
• Digital products and services, such as streaming and cloud software, are increasingly taxed, with about half of states taxing subscription-based digital services.
• Some states have proposed or enacted taxes on digital advertising, but these face legal and constitutional challenges.
• Businesses must recognize that digital goods and services are increasingly subject to sales tax, regardless of physical form.

Source: ggi.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.

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