Sales tax and VAT terms for global finance teams
A comprehensive glossary of expert definitions and practical insights designed specifically for modern software and SaaS companies.
Whether you’re dealing with bundled transactions, trying to understand nexus thresholds, or managing cross-border digital service taxes, use this glossary to stay compliant and up to date while scaling globally.
Terms
Terms
Digital goods
Digital products delivered electronically, including software downloads, digital media (music, movies, e-books), digital subscriptions, and online gaming content.
Taxability of digital goods
As the digital economy continues to expand, understanding if and how sales tax applies to digital goods becomes increasingly challenging for software businesses. Some jurisdictions tax all digital goods, certain types of digital goods, or they may exempt certain digital goods from tax altogether.
Once a digital good is determined taxable, tracking accurate tax rates across jurisdictions and managing the tax collection and remittance process can add hours of manual work.
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