Where is your product taxable in 2023? Accurately classifying your product is a critical first step in getting sales tax compliant, and avoiding costly fees, penalties, and back taxes. But it’s far from easy.
As legislatures across the US and around the world rush to keep up with the pace of digital innovation, definitions of digital products like SaaS are constantly changing, with little consistency between jurisdictions.
A state might tax SaaS but not PaaS, traditional digital goods but not NFTs, or people services only when bundled with another type of digital product. Some states also tax certain digital products when sold B2B but not B2C, or vice versa.
This simple tool, created by Anrok’s team of sales tax experts, breaks down the landscape of digital product taxability in 2023.