Virginia Proposes 2027 Digital Sales Tax Expansion Impacting SaaS, Software, and Digital Services

• Virginia is considering House Bill 900, which would expand sales tax to cover digital products and services starting January 1, 2027.
• The bill would lower the state sales tax rate from 4.3% to 4.0% but broaden the tax base to include “digital personal property” and specified digital services, including many B2B transactions.
• Taxable items would include software, digital audio/video, e-books, digital codes, and digital subscription services.
• SaaS, software vendors, digital service providers, and their finance teams would need to update tax compliance, billing systems, and pricing models if the bill passes.
• The changes would significantly impact budgeting, pricing, and contract planning for businesses serving Virginia customers.

Source: taxcloud.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.

---

---