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Software, Digital Goods, NFTs and Digital Currency: What You Need to Know for Sales Tax

Location
On-Demand Webinar
 
 
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Overview

Determining how sales and use tax apply to software and digital goods can be intimidating for even experienced tax professionals, and with good reason. Companies across the board are constantly developing new software and digital products for the market and the result is a rapidly evolving tax landscape.  

Sales of software and digital goods can be taxed differently on a state-by-state basis as states work to understand new technologies, define them, and ultimately, tax them. 

For example, the way in which software is delivered (tangible vs. electronically vs. remotely accessed) and whether it’s prewritten or custom can mean the difference between the sale being taxable or exempt. 

Another relatively recent development that states are beginning to explore is the taxation of cryptocurrency and non-fungible tokens (NFTs). New laws and regulations include allowing for commercial cryptocurrency mining operations to apply for an exemption certificate for purchases of electricity. 

You need to understand the differences in how these products are taxed no matter if you work on the buyer or seller side of software and digital good transactions. This webinar will teach you how to manage sales tax correctly for these transactions so you can avoid costly errors and increased audit risk.  

This webinar is intended for financial and operations personnel—including tax, general accounting, accounts payable, sales, tax technology, purchasing and credit—who deal with sales and use tax as part of their responsibilities. The webinar is also intended for those who make sales or purchases of software and digital good products. The course is also designed for general practitioners, with minimal to no experience. 

 

Who should attend? 

This webinar is intended for financial and operations personnel—including tax, general accounting, accounts payable, sales, tax technology, purchasing and credit—who deal with sales and use tax as part of their responsibilities. The webinar is also intended for those who make sales or purchases of software and digital good products. The course is also designed for general practitioners, with minimal to no experience. 

About the Instructor

Diane L. Yetter, President & Founder, YETTER and Sales Tax Institute

Diane L. Yetter is the “Sales Tax Nerd TM” as well as a strategist, advisor, speaker and author in the field of sales and use tax. She is president and founder of YETTER Tax, a sales tax consulting and tax technology firm in business since 1996. She is also the founder of The Sales Tax Institute, which offers live and online courses to educate business professionals about sales and use tax.

More About Diane L. Yetter

Very thorough, well detailed, and complete. Diane is a very good presenter and easy to understand. Enjoyed today’s webinar.”

Additional Details about the "Software, Digital Goods, NFTs and Digital Currency: What You Need to Know for Sales Tax" Webinar

Taxation of software and digital goods add new layers of complication to the already complex nature of managing sales tax. And the challenge isn’t going away! Today, states continue to enact legislative changes that determine how they characterize sales of software, and the presence of digital currencies is growing. Plus, there is also an emerging trend across the states to tax digital goods (like podcasts, downloaded music, webinars, and eBooks) that tax pros need to stay ahead of to stay compliant. 

States see the proliferation of new virtual products as opportunities for new revenue streams and propose legislation accordingly. Are you aware of the changes taking place across the states? If not, you may be subjecting yourself to significant audit risk if you should have been collecting tax. 

No matter what you sell, be it software or a digital good, you must look closely at its features and delivery method to compare with state rules. Some consistency exists among Streamlined Sales Tax states who have adopted the standard definition of “specified digital products,” but you still must approach taxation of your software or digital goods on a state-by-state basis. 

Digital currencies like cryptocurrency and non-fungible tokens bring further complications into the mix. Similar to how sales tax statutes regarding goods, services, and communications have expanded and shifted in an increasingly digital world, states are adjusting their manufacturing exemptions to address emerging technologies. You need to know how to apply tax to things that only exist in the digital realm and that continue to be reinterpreted with each new introduction to the digital commerce landscape. 

This webinar will help both buyers and sellers of digital products and software understand how these products are taxed and provide guidelines to follow. We’ll also cover the practical issues you need to know such as contract and invoice language, documentation of delivery method, and sourcing rules. 

Your Teaching Staff 

In this 90-minute On-Demand webinar, sales tax expert Diane Yetter of the Sales Tax Institute will teach you the different ways that software, digital goods, and digital currencies can be taxed. She’ll share all the important recent legislative changes regarding these topics across the states to keep you up to date. You’ll also learn about exemptions that are available for software and digital good purchases as well as digital currency mining, so you can take advantage of cost-savings opportunities. 

Learning Objectives for this webinar include: 

  • Learn how the taxability of software can vary based on how it’s delivered so you can ensure that these transactions are being taxed correctly. 
  • Get updated on how states define digital goods and digital currencies today for sales tax purposes, so you don’t encounter any surprises. 
  • Discover exemptions that can apply to software, digital goods, NFTs, and digital currencies to bring cost savings to your company. 
  • Understand the importance of contract provisions and invoice presentation and how they can affect the taxability of your sales. 
  • Get the latest updates on state initiatives to tax digital advertising (like those in Maryland and New Mexico) so you can stay ahead of this emerging trend and understand the nuances among the proposals. 
  • Learn ways to minimize tax consequences for global or national software contracts from a software user’s perspective. 
  • Understand how to document user locations to accurately report the tax as well as how to address this from either a seller or buyer perspective. 
  • Get an overview of the global consequences of licensing digital goods abroad. 

CPE Information:
Webinar attendees can earn 1.5 hours of CPE credit in the “Taxes” field of study

Prerequisites: This course requires no prerequisites or advance preparation.

Program Level: Basic

Delivery Method: Group Internet-Based

 

Additional Information about CPE

Cancellation/Complaint Policy

 

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