Supreme Court taxation ruling: Are SaaS businesses screwed?
So the US Supreme Court today ruled that Internet businesses can be taxed, even without physical presences in a taxing district. This is a big deal, as it can mean that small Internet companies may need to pay tax in any of 10,000 different taxing districts. (And probably the EU will follow!)
But what if you don't even have a physical... product. Anyone get a good read if SaaS businesses are exempt from this ruling?
Other general thoughts?
What a nightmare.
EU already got this its called vatmoss. You have to pay vat to every country that your users are from
I see this is an opportunity for someone to be a middle-man that helps (and charges) other saas owners with paying the right amount of sales tax per state and keeping up with the appropriate paperwork. A bit of automation would go a long way here...
It will be interesting to see how this ruling plays out ...
The entire opinion is worth reading:
https://www.supremecourt.gov/opinions/17pdf/17-494_j4el.pdf
Probably only exempt in some districts.