SaaS sales tax checklist
Should you charge sales tax on your SaaS product? Some states consider your software a product and tax it like any other product. Others consider SaaS a service and don’t require you to collect. It can be overwhelming to keep up with, and that takes time away from growing your business.
There's no one-size-fits all approach when it comes to sales tax. Our SaaS checklist provides an overview of the questions you should consider when it comes to sales tax and SaaS.
This checklist will help you:
- Determine where you have sales tax obligations: Based on employee location, sales volume, and other business activities.
- Clarify your product's taxability: Analyze your SaaS offering and billing model to see how it's treated in the states where you have sales tax obligations.
- Assess your tech stack: Evaluate if your billing and ERP systems are correctly configured for accurate invoicing and tax collection.
- Plan for implementation: Get best practices for communicating changes to your customers and training your internal teams on new quoting or refund processes.
- Streamline your filing process: Understand your filing frequencies and learn what it takes to manage remittance and reporting, whether manually or through automation.
Download the checklist for an introduction into tax compliance for SaaS businesses.
