In the wake of the Wayfair decision, there are a lot of questions surrounding sales taxes across the many U.S. states. While many queries we receive revolve around establishing physical presence and nexus for retail items, the next important question a company must always ask is, “If I have nexus, is my product taxable?” In that regard, there are a few areas many business often overlook: Software-as-a-Service (SaaS), cloud computing and electronically downloaded software. Are these items taxable? It depends.
A few months ago we explored the taxability of SaaS, cloud computing and electronically downloaded software in 15 states across the country; today we’re taking a look at the tax ramifications of three more states: North Dakota, South Dakota and Nebraska.
Nexus & Constitutional Issues for Middle America Companies
Following the Wayfair decision, do companies in North Dakota, South Dakota and Nebraska need to pay online sales tax to states in which they’ve established nexus? And if so, what is the tax threshold?
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