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jakejohnson | 7 years ago

SaaS is taxable in some states [1], so if you have nexus in one of those states you'll want to register for a sales tax permit and collect sales tax for that state. When these states introduce thresholds similar to South Dakota, you may be obligated to collect sales tax in additional states.

You can use a sales tax API with Stripe [2] to calculate sales tax before processing the payment. From there, you'll have to remit the sales tax to the state manually or use sales tax compliance software like TaxJar or Avalara.

[1] https://blog.taxjar.com/saas-sales-tax/ [2] https://developers.taxjar.com/blog/handling-sales-tax-with-s...

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