US Sales Tax Solutions for Digital Products

Whether your product is in the cloud, on-demand or downloadable, you may be subject to registering, collecting, paying, remitting and filing US sales tax for your digital product(s). 

The digital economy has made commerce borderless, so anyone anywhere in the world can access your product or service via the web. It has never been easier to penetrate the US market – but if US consumers buy or subscribe to your product, you must keep the tax man happy! 

Luckily, Yonda can help you sell your digital products compliantly for US sales tax. 

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What Are Digital Products?

A digital product refers to any commercial product that is sold electronically and delivered 100% digitally, with no physical goods or in-person involvement. Various examples and new products are being created all the time, but they include:

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All cloud computing service models
(SaaS, IaaS & PaaS).

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Cybersecurity and other client or server software products

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Apps & Games

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Hosting & virtual resources

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Streaming services
(video, music).

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All downloadable or on-demand paid content

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Filing sharing & data storage

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Edutech & other paid
webinar models

If you sell digital products to US customers,
you might need to register for sales tax

Is There a Sales Tax On Digital Products? 

If you sell digital products to US customers, you might need to register for sales tax. 

Sales tax, however, is complicated. Fortunately, Yonda’s tech can automate the tax calculation, returns and submission for you. But to implement the most practical and compliant process for your business, one of our experienced Sales Tax consultants will explain everything upfront and be there to support you as your business continues to grow.

What States Charge Sales Tax On Digital Products? 

The world continues to go digital. Therefore, more business owners are now subject to complying with US state sales tax laws. But, where exactly in the US are you required to collect and remit sales tax? 

US sales tax rules vary by state. As a result, business owners will need to check with individual sales tax authorities. You will need to collect sales tax when you have a Nexus – this simply means you have an economic presence in a specific US state (or states) and are required to collect and remit your customers’ sales tax. 

Today, digital products are subject to sales tax in 45 different US states. However, with rules being complex and ever-changing, it’s best to consult a sales tax expert

How Can Yonda Help Me Sell My Digital Products Compliantly?

Yonda offers various sales tax services. Whether you are a business owner based in the UK or operating solely in the US, we can help with your digital products sales tax issues. We can provide:

Onboarding & Sales Tax Implementation 

Our Digital Products specialist will make sure they understand your product, commercials and web shop setup. It is important we understand the nuances of your digital products so that the correct sales tax rules are applied. We will set up your account and guide you through the process of importing your sales data. Once this is done, the ongoing experience should be completely automated.

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Sales Tax Automation with a Digital Products Wingman 

Once your profile has been set up, the ongoing process can be completely automated. However, all kinds of problems and questions can pop up. Therefore, Yonda will appoint you you an account manager who has sales tax expertise and knowledge of the world of digital products. 

You can ask your Digital Products Wingman anything at any time. As your business grows, you will face new challenges and will need to assess your exposure in different US states. But don’t worry, we’ve got your back throughout your sales tax journey. 

Read more about our services >

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Start Selling Digital Products Compliantly with Yonda

Whether you have a physical or economic nexus in a US state, or even if you don’t know if you do, get started today with Yonda. We can help you set up your shop online and help you start selling compliantly for US sales tax. 

Got a sales tax problem? Let us know. Want to find out more about digital products’ sales tax? Great, we can also help. Simply contact us today. 

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