- Digital services have reshaped the global economy, with the US and its tech giants playing a key role
- Use tax complements sales tax and applies when consumers purchase goods/services without paying sales tax
- Each US state has its own legislation defining sales and use tax rules, leading to over 13,000 tax jurisdictions
- The 2018 Supreme Court decision in South Dakota v. Wayfair, Inc. allowed states to impose tax collection obligations on remote sellers
- Key challenges for digital service providers include fragmented state tax laws, difficulty tracking tax rules, and varying regulations across states
Source: vatabout.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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