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
Home-rule jurisdiction
In the sales tax context, a home rule jurisdiction is a city, county or municipality with a self-administered local taxing authority that manages taxability, collection and compliance independent from the state department of revenue.Â
For example, Colorado has over 70 home-rule cities and SaaS—which is not broadly taxable by the state—is taxable in certain cities. Furthermore, while many home rule states allow reporting on a single state sales tax return, in Colorado many home rule cities have a separate and unique return, filing frequency and payment requirement from that of the state.
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