Sales Tax Essentials for Subscription Businesses: Navigating Recurring Revenue and State Tax Rules

• Recurring revenue from subscriptions can create complex sales tax obligations, varying by state and product type.
• Digital subscriptions (SaaS, streaming, digital access) are increasingly taxable in many states, but rules differ.
• Economic nexus and transaction thresholds can be triggered quickly by recurring payments and renewals.
• Marketplace facilitators may handle sales tax collection for auto-renewals, but businesses must still monitor compliance.
• Bundled offerings require careful itemization to avoid over-taxation; automation helps but regular tax reviews are essential.

Source: salestaxsolutions.us

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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