In addition to evolving economic and physical presence nexus standards, states have begun imposing sales tax on software, digital goods and online services—all of which create complications for taxpayers and enforcement officials, who must classify and source the transactions. As a result, companies must now establish baselines for:
- How sales tax must be paid
- Sourcing taxable sales of products and services
- Automating the sales tax compliance process
- Managing sales tax obligations to minimize risk
To provide tax professionals with an overview on the evolving sales tax nexus landscape, including the impact of state imposed sales tax on software, and digital goods and services.
- Sales Tax: General Application
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State Efforts to Impose Sales Tax On:
- SaaS
- Cloud computing
- Digital goods and services - Examples of the Most Aggressive States
- Problems with Imposing Sales Tax on Digital Products
- Planning Opportunities
- Forecasting: What Does the Future of Sales Tax Look Like?
• Identify the states’ current position towards the collection of sales and use taxes
• Recognize the various challenges to sales and use tax compliance experienced by multistate vendors
• Recognize the states’ position towards what constitutes tangible personal property and its sales and use tax implications
• Identify states’ sales tax position as it applies to digital goods and services
• Recognize the sales and use tax implications of states that view SaaS products as tangible personal property
• Identify states’ reasoning in those instances in which they do not tax digital products
• Identify the general sourcing rules for taxable services