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
Sales tax exemption
A sales tax exemption is a specific statutory exception that permits a purchaser to make a purchase that would otherwise be subject to tax, tax free. A “sale for resale” is a common example of an exemption, which allows a retailer to purchase goods from a wholesaler tax free. For SaaS sellers, an exemption that several jurisdictions offer is Multiple Points of Use (MPU) exemption, defined below.
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