SaaS billing tax: is a billing address enough?


so I have a startup that provides an online SaaS solution. We are not shipping any items, so payments do not require a shipping address. For collecting taxes in the states that my company has offices (MA and CA), is tax simply based on the billing address, or do I have to also ask for a shipping address and base the sales tax off of that?

Payments Saas Online Billing

asked Nov 9 '13 at 07:02
Stuntman Mike
16 points

1 Answer


Tax is a tricky matter, and it gets even more tricky in the USA, where local state taxes apply.

You would be best advised by a lawyer and you should speak to the lawyer about a possible solution or structuring where you may be able to register your business in a state like Delaware, where there is practically no state taxes, so that you might be able to save on paying excessive state taxes (which CA has).

If I am not mistaken, I also don't think there was a sales tax for online selling before, but I think this has changed.

answered Nov 23 '13 at 05:10
201 points

Your Answer

  • Bold
  • Italic
  • • Bullets
  • 1. Numbers
  • Quote
Not the answer you're looking for? Ask your own question or browse other questions in these topics:

Payments Saas Online Billing