- US sales and use tax (SUT) compliance is complex due to varying rules across 45 states and DC, especially for technology companies.
- States differ in how they tax software, SaaS, online education, and digital information, with some offering exemptions or reduced rates.
- Companies should reassess their nexus profile, as both physical and economic activities can trigger tax obligations in multiple states.
- Failing to identify nexus can lead to significant back-tax exposure, interest, and penalties.
- Proactive compliance reviews before year-end are recommended to address and correct potential issues.
Source: bdo.global
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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