Today the SIIA community and our member Carolynn Kranz gathered for an informational webcast on how recent U.S. Supreme court rulings will impact your sales & use taxes as a technology provider.
Being compliant with sales and use taxes has always been a major challenge for technology providers. It has now become further complicated by the U.S. Supreme Court’s landmark decision in South Dakota v. Wayfair, Inc. in which the Court recognized a new nexus standard based on “economic and virtual contacts” with a state. Furthermore, given sales and use tax provisions were developed in a manufacturing-based economy, the taxability of software, digital goods and cloud computing services is not always clear and varies by state. In addition, given the remote nature of these transactions, determining which state has the right to tax the transaction has added increased complexity.
This webinar addressed the following:
· Factors to be considered in determining where your company has nexus, and therefore a sales and use tax filing obligation;
· The provisions states are relying on in attempting to tax products and services sold by publishers and content providers;
· Invoicing nuances that can negatively impact taxability;
· Information a state will rely upon in situsing the transaction; and
· The types of customer exemptions that may be applicable to the transaction.
Carolynn is the founder and Managing Member of Industry Sales Tax Solutions, LLC, which offers a
subscription database containing the sales and use taxability of software related transactions, digital
content and cloud services; and the Managing Member of Kranz & Associates, PLLC, a boutique law
firm specializing in state and local tax consulting. Carolynn specializes in state and local tax matters
on a multi-state basis.