2023 saw governments around the world continue expanding their efforts to capture revenue from the rapidly growing software sector.
This was the first year that all 45 states that collect sales tax had economic nexus laws in effect, allowing them to require sales tax compliance from remote as well as local businesses. Globally, governments followed the same trend, with over 100 countries now taxing nonresident sales of digital products.
Authorities also stepped up enforcement of existing tax regulations, using tools like audits, expanded definitions of taxability, and new reporting requirements to bring more digital businesses into compliance.
Overall, governments are working aggressively to eliminate the possibility that noncompliant businesses can operate in their jurisdictions—making it critical for any business selling across borders in 2024 to check compliance off the list, or risk revenue loss.
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