It’s easy to see why software companies struggle with getting sales tax right. How do you apply a tax meant for tangible personal property to an intangible product or service? Attempts by states to solve for this have resulted in a complex tapestry of tax rates and rules for software and software as a service (SaaS).
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The reality is that sales tax isn’t going to get easier for software companies anytime soon. The more you can predict and plan for these changes in your business, the better off you’ll be. Avalara’s tax automation software integrates with your ERP, ecommerce and other financial systems, making it easier to prove compliance and plan for growth.