Judy Vorndran
Nov 8, 20191 min
Question: Can you provide some examples that are Software as a Service (SaaS) and not tangible shipped goods?
Answer: SaaS definitions and the way its taxed varies widely among states. While some states tax SaaS as tangible personal property, others see it as a service, making taxability conditional on current tax policy. Assuming that your SaaS (PaaS, IaaS, or any other “as a service” digital good) is a service and therefore not taxable would do your company a great disservice as more than 15 states will tax SaaS.
Read more: Reconciling SaaS sales and use tax