Evolution of SaaS taxability

Sales tax laws developed around the traditional model of brick and mortar stores selling tangible personal property. The rapid advancement of computer technology has outpaced the ability of, often slow moving, state legislatures to keep state codes up to date with the modern world.

This guide will discuss the evolution of sales tax on software and the state nuances and complexities specifically associated with taxing Software-as-a-Service (SaaS).

Anrok was designed for the intricacies of SaaS companies. Let Anrok focus on the ever changing complexities of state SaaS taxation, while you work on growing your business. Download this guide to learn how SaaS sales tax has changed over time. Couple this guide with our sales tax glossary to get up to speed quickly.

Evolution of SaaS taxability


Evolution of SaaS taxability

Since SaaS doesn’t easily fit into existing buckets, and most states only tax very specific enumerated services, states have taken various approaches to addressing it. This results in SaaS being defined differently across states.

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