Sales tax for SaaS? How do you all manage it and all the other state and local hoops?

bledwards1

New member
Our SaaS startup (Delaware c-corp) is growing and we recently hired a new employee in WA, our first in that state. As a result, we've had to register in the 27 different departments (ESD, DOR, B&O, kill me now...). And now, because we have 1 employee in the state, we make "nexus" and have to manage quarterly excise tax despite barely having any revenue in the state.

We now have to spend considerable energy and resources making sure we're in compliance with Washington state.

We also hired an employee in Ohio and had to jump through an almost equal number of hoops.

How can we (or do you all) manage state and local tax and compliance in a scalable way? For reference, this is a good article (not mine) on the differences in SaaS taxation across states: https://thetaxvalet.com/blog/which-states-require-sales-tax-on-software-as-a-service/

Are there other SaaS platforms to assist with this? We're an enterprise SaaS so a lot of our subscriptions are contract to invoice and we need a scalable way to know what the requirements, like Sales Tax, are for any given customer in any given state or jurisdiction.

Good problem to have, but still we want to manage it efficiently.
 
@bledwards1 Anrok is a great solution for sales tax compliance specifically for SaaS. Will handle everything - monitoring, registration, calculation, filing and remittance, etc. Integrates with all the major billing and HRIS systems to track and manage economic/physical nexus -- https://www.anrok.com/product
 
@bledwards1 As your SaaS company scales, staying compliant with sales taxes in the U.S becomes more complex and managing all those SaaS payments can be a lot to juggle.

If you are looking for one solution, I'd recommend you to contact https://payproglobal.com/. PayPro Global handles global payments including different currencies, payment methods and global taxes, subscription management, check-out pages, compliance and so on.

It looks like it is just what you are looking for.
 

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