Your SaaS company is growing, your sales tax exposure doesn’t have to.

Register, collect sales tax and file your returns in one simple platform.

Speak to us for all your sales tax requirements.

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Our Clients

Return assistance technology for eCommerce businesses.

Integrations:
Sector:
Cloud Computing, SaaS
Tax Challenges:
Sales Tax Compliance

Light novel and manga magazine subscriptions.

Integrations:
Sector:
Digital Products, e-books, SaaS
Tax Challenges:
Sales Tax Compliance
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US Sales Tax for SaaS Vendors

1. Is SaaS Taxable?

Yes.

Even though the U.S. tax system was designed before the Internet, most have updated their rules so they can tax software companies.

Your tax exposure and approach to managing sales tax will depend on your specific product – but more than 30 states in the USA tax SaaS or other software in some form.

Even if you have no physical or legal presence in a State, your SaaS product can be taxable. Your tax exposure will be based on your sales in that state.

2. Is SaaS Charged For Sub Fees?

If your SaaS is taxable in a state, you’ll have to collect tax when billing customers in that state – but only if you have created nexus.

When a customer signs up or is billed for their subscription, their final price must include sales tax.

You might need a solution that integrates with your billing stack – this will depend on whether you decide to pay out of pocket or pass the tax on to customers.

3. Where Should I Collect Sales Tax?

You need to determine if you have sales tax exposure in any state. If you have nexus in any state, you should collect sales tax there.

We will explain your obligations based on your SaaS product, sales activity and where your customers are based.

Once you understand how it impacts your business, we do all the work: from sales tax permits to filing returns and talking to tax offices – you won’t need to do anything.

4. What Are The Risks Of Non-Compliance?

Non-compliance can end up costing you up to 5% of your taxable SaaS revenue.

If you should be collecting sales tax and are not, you’re operating non-compliantly and are at risk.

There can be reputational and financial exposure  – you legally owe the tax you haven’t charged, plus penalties and interest.

Tax non-compliance will be flagged during due diligence on any transaction (raising funds / M&A acquisition / listing).

Yonda’s Solution For SaaS

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Yonda tax saas integrations

Integrations

Filing your sales tax returns with Yonda is simple. Customers can log into our secure, cloud-based platform to upload the required data – but for a more automated solution, Yonda can easily connect with the business applications you use to generate the sales reports.

Here are the most common systems we integrate with.

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How We Help SaaS Merchants

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