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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. Rarely is software licensed as a stand-alone product these days – bundling different services and digital goods is more common. How does a bundle of information services, training and software get classified? Is the true object test the approach to take? Or does a taxable component of the bundle taint the entire charge?
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.
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.
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 – yes I’m talking about you Louisiana! Plus, there is 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. 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.
During the live Q&A portion of the webinar, you can get answers to your specific sales tax questions directly from Diane.
Webinar attendees can earn 1.8 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
Questions about the registration or webinar process, or need help troubleshooting? Visit the Live Webinar FAQ page to get answers.
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
The All-Access Webinar Pass grants you the ability to attend an entire year’s worth of Sales Tax Institute live webinars and access all existing on-demand webinars!
As a busy tax pro, it can be hard to find quality professional development throughout the year. The All-Access Webinar Pass takes care of all your required sales tax training in one easy step. Learn from the experts about the sales and use tax issues that matter with access to the Sales Tax Institute’s monthly live webinars and full, unlimited access to the Sales Tax Institute’s on-demand webinars.