Re:Ask HN: Congress is Passing an Internet Sales Tax: Why Do...
by chrismaeda on Tuesday April 23, 2013 @11:06AM
(#5595546)
It depends on the state. Some states tax services (eg Ohio), while most states only tax physical goods.
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Re:Ask HN: Congress is Passing an Internet Sales Tax: Why Do...
by creativename on Tuesday April 23, 2013 @11:13AM
(#5595601)
So it would depend on the state that your SaaS company is located in, or where your customer is accessing it from?
Re:Ask HN: Congress is Passing an Internet Sales Tax: Why Do...
by chrismaeda on Tuesday April 23, 2013 @11:42AM
(#5595825)
The latter. If you are a SaaS business in a state that taxes services, you only have to collect sales tax for customers in your state today. Under the new legislation, all SaaS businesses in the US would have to collect sales tax for any jurisdiction that taxes services.
The simplest way around this would be to set up your SaaS business in Canada.