Sales tax, explained clearly

As jurisdictions work to make up new rules or categories that can fit SaaS, conflicts inevitably arise. This is particularly the case with home rule cities like Chicago, Illinois.

You might expect a yes or no answer—but the question of whether SaaS is taxable in Colorado is far more complicated. Home-rule cities like Denver, Boulder, and Colorado Springs set their own taxation rules.

Software-as-a-service (SaaS) is a relatively new addition to the world of commerce, and it’s quite a bit different than goods that have traditionally been bought and sold—and taxed—in the marketplace.

Deciding how to get your business sales tax compliant with historical exposures? This guide can help you navigate the decision-making process around Voluntary Disclosure Agreements.

With Anrok, you can enable sales tax compliance in 40+ countries on a single platform, helping you protect your revenue as you expand outside the U.S.

Once you’ve registered to collect sales tax and filed returns with a state, it can be difficult to close that sales tax registration so you can stop filing returns. This lingering responsibility to a state regarding sales tax is called trailing nexus.

Most companies can expect to be audited at some point, so it’s important to have a plan for when this inevitably happens. You can get flagged for a sales tax audit for a variety of reasons. These include sales volume, high volume of exempt sales, and more.

Without valid addresses for all your customers, you have an incomplete picture of your sales tax exposure, and you may face increased audit risk as a result.