Software As A Service Taxable. By Jennifer Dunn September 18 2020 Sales tax can be complex when you sell a SaaS product. Remotely accessed software vendor-hosted software and electronically delivered software.
Digital automated services DAS The laws also cover remote access software RAS which is also subject to sales and use tax. Installed at and hosted from a remote server or location. For one thing some states consider SaaS taxable while others dont.
One thing that can get a little tricky when selling SaaS products is sales tax.
As can be seen the rules used by states to tax SaaS vary widely by state. One thing that can get a little tricky when selling SaaS products is sales tax. That means states get to set their own rules and laws about what is subject to sales tax. Charges for maintenance or upgrades to online hosting software are not taxable even if separately stated.