Sales taxes on Software as a Service (SaaS)

• Software as a Service (SaaS) is a modern software distribution model typically purchased via subscription.
• The taxability of SaaS in the United States can vary depending on a few factors, including the state it’s purchased and whether it’s for business or personal use.
• Laws related to the taxability of SaaS (and the taxability of e-commerce in general) can change each year, as states regularly update their sales tax laws – this article is accurate as of the publish date, and will be updated as necessary.
• If you operate a SaaS business and are wondering if you should be adding state and local taxes to your pricing — it is critical to stay up to date on the latest rulings from tax authorities in each state.

Source: FONOA

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