**Yes, SaaS sales tax in the US does exist. **A few things to consider:
- Which states have SaaS Sales Tax? Here’s a nifty map of which states that have Saas Sales Tax: (kudos to TaxJar!) http://blog.taxjar.com/saas-sale…
- Who does SaaS sales tax apply to? Do you have nexus? ie, Are you subject to Sales Tax in these states?
- In general, do you have Revenue >$500K in sales in that state?
- Do you have Payroll in that state?
- Do you have Assets/Rent in that state?
- When do I have to file? It varies by state, but in general, the more sales tax your collecting, the more frequent the state wants their money. Most due dates are therefore annually, then quarterly, then monthly.
- What is the SaaS sales tax rate? It varies by state, but is usually pretty low. Connecticut, for example, is 1% of SaaS sales.
- **What are the penalties for not filing? **They’re hefty. Usually ~25%. Don’t put this off.
We have a bunch of SaaS clients, and so far only a few have broken into multi-state revenue-based nexus. Good problem to have! Until then, your activity in other states is likely de minimis. BUT WAIT! Your situation is unique, and this is just general info: work with your CPA to determine your liabilities… or hit me up at vanessa@kruzeconsulting.com
Vanessa Kruze, a seasoned CPA, has an impressive track record prior to establishing Kruze Consulting. Her experience includes pivotal roles at Deloitte Tax and as a controller for a substantial startup with over 120 employees and $20 million in revenue. Under her leadership, Kruze Consulting has emerged as a distinguished CPA firm, recognized on the Inc 5000 list for five consecutive years, illustrating rapid growth and success in the competitive accounting landscape. Vanessa's unique approach, combining deep industry knowledge with advanced automation and software solutions, has positioned her firm as a leader in providing comprehensive accounting services to startups across the United States.
