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  • Writer's pictureJudy Vorndran

Taxing SaaS

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.

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