How do different states treat Sales tax on the products we sell.. Are we considered SAAS (software as service) or Digital products... Please help me understand how you define the tax to be charged onn individual products. Please help so that I can ask the right questions to the state officials. Thanks
Great question!
From my experience you can have different taxes by county, city, state, provinces etc.. I use avatax from Avalara because they provide auto updated tax rates for any location. Trying to update rates manually is time consuming.
It is my impression that if you use the Vendasta payment portal, that would address any tax questions. I will double check to see if my assumption is correct and report back to this thread.
Hi Sandeep, in the payment portal you can adjust the tax rate. The tax rate should reflect the law of the state. Your local accountant will be best source to help you navigate the taxation laws.