Multistate Sales Tax Issues: Digital Products and Services

Author: Mark S. Klein, Joseph N. Endres, Daniel P. Kelly, Hodgson Russ LLP

CPE Credit:  2 hours for CPAs

Sales and use tax compliance has changed considerably since the Wayfair decision three years ago. This presentation will review these changes, with a particular focus on businesses selling digital goods and services (SaaS, IaaS, information services, IT services, etc.). We will provide an overview of nexus rules, including physical nexus and Wayfair thresholds, as well as a review of recent guidance impacting sellers of digital products and services. The webinar will also address how taxing authorities identify businesses to audit, as well as tips and traps in a sales tax audit.

Publication Date: October 2021

Topics Covered

  • Jurisdictional issues & sales tax nexus
  • How sales tax is applied to the sale of software products and services
  • Treatment of "electronic" delivery, cloud computing, and out-of-state users
  • Taxation of digital products
  • How sales tax is applied to the sale of information services

Learning Objectives

  • Identify the decision changes of Wayfair
  • Recognize nexus rules
  • Recognize how taxing authorities identify businesses to audit
  • Identify tips and traps in a sales tax audit
  • Identify a sale to a business where digital products are sold to both business and consumers
  • Identify a service where a customer is provided processing, storage, networks, and other fundamental computing resources
  • Differentiate state rules and how they apply
  • Identify a situation where a customer uses a cloud provider's cloud infrastructure and tools to build or deploy applications and content

Level
Basic

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
None

Advance Preparation
None

Registration Options
Quantity
Fees
Houston CPA Society, Chapter of Texas Society of CPAs Special Fee $44.25
Regular Fee $59.00

 Chat — Books Support