Ask YC: Do we have to collect sales tax on SaaS?

5 pointsjotto2 comments

I am selling an online subscription to a web product - just like 37Signal's line of products. Has anyone had any experience on the official Federal or state policies?

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In some states, there is a use tax that applies like a sales tax would for services purchased. In GA, it's 4-8%.

http://www.bankrate.com/brm/itax/state/state_tax_home.asp

Often, you only have to worry about users in your state, and the rate you have to pay may be dependent on your city/county.

I think you need to collect for people in your state.

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