This article was contributed by our partner, Avalara, as part of its campaign to help more software businesses track sales and excise tax, be audit ready, and know when and where they should file to make sure they are compliant with any new tax obligations.
The software industry is dynamic, with new developments and trends happening all the time. Tax legislation is constantly evolving to keep pace with the industry, and trying to stay compliant can get complicated. As it stands, the 45 states with a sales tax, plus Washington, D.C., categorize software up to 10 different ways for tax purposes. That can be a lot to manage if your company is doing it alone.
source https://blog.fusebill.com/managing-sales-tax-for-software-companies
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