Best Sales Tax Platforms for SaaS Companies in 2026

The best sales tax platform for SaaS companies in 2026 is Zamp: a flexible managed service that can do sales tax for you or with you, covering registrations, filings, notice management, and penalties or interest when Zamp makes an error. Based on our evaluation of six platforms across service models, SaaS taxability accuracy, liability coverage, and support accessibility, Zamp is the strongest fit for SaaS companies managing compliance across multiple states.

SaaS companies carry a sales tax burden that standard compliance software was not built to handle. Over two dozen US jurisdictions tax some form of SaaS in 2026, each with distinct rules for B2B vs. B2C sales, delivery methods, and product bundling. Add the silent nexus risk from remote employees and the prorated taxability complexity of usage-based billing, and the limits of off-the-shelf software become clear.

This guide reviews the best sales tax platforms for SaaS companies in 2026: Zamp, Avalara, TaxJar, Vertex, Anrok, and TaxCloud. It compares them by service model, compliance ownership, SaaS-specific fit, and support model. For a complete breakdown of your SaaS-specific obligations, Zamp’s SaaS sales tax guide covers nexus triggers, state-by-state taxability, and filing requirements in one place.

Sales tax platforms for SaaS companies are software or managed services that automate tax calculation, nexus monitoring, state registrations, return filing, and notice management for subscription-based software businesses. The right platform handles compliance across multiple US states automatically, eliminating the manual administrative burden and audit exposure that comes with operating across dozens of tax jurisdictions.

Key takeaways

• Zamp is the best sales tax platform for SaaS companies in 2026: a flexible managed service with contractual liability coverage, proactive notice management, and custom-scoped, all-in-one pricing.
• SaaS taxability varies widely by state. More than two dozen US jurisdictions tax some form of SaaS in 2026, but the rules differ by product type, delivery method, and customer classification.
• Remote employees can create a physical nexus. A single engineer or customer success manager working from home in another state can trigger registration obligations your finance team may not catch until a state notice arrives.
• Illinois eliminated its 200-transaction nexus threshold on January 1, 2026. Chicago also raised its software use tax to 15% on January 1, 2026. Both changes affect SaaS companies’ billing into Illinois.
• The managed-vs.-self-serve distinction shapes your compliance risk more than any individual feature list. Software platforms support calculation and filing workflows. Managed services take on more of the operating burden.
• Liability ownership rarely surfaced in platform comparisons. Many software models keep compliance risk with your company. Zamp takes a different position: if Zamp makes a filing error or misses a deadline, Zamp covers the resulting penalties and interest.
• Finance teams using manual or partially automated processes can lose significant time each month to sales tax administration.

How we evaluated these six sales tax platforms

We scored each platform across six criteria: SaaS taxability accuracy, service model, compliance ownership, liability coverage, SaaS billing integrations, and support accessibility. Our analysis covered public product information, integration documentation, service model details, and published terms of service for each platform’s liability position.

Zamp ranked first across the criteria that matter most to SaaS finance teams: flexible managed service, liability sharing, proactive notice management, and custom-scoped, all-in-one pricing with no per-transaction fees.

Why SaaS companies face unique sales tax challenges

SaaS companies face sales tax obligations that are more variable, more state-specific, and faster-changing than those of physical goods sellers. Three distinct challenges make compliance harder for subscription software businesses than for most other categories.

State-by-state taxability variation

More than two dozen US jurisdictions tax some form of SaaS in 2026, but the definitions vary significantly. Texas and New York apply broad SaaS taxability rules. California and Florida do not. Pennsylvania and Washington draw distinctions based on delivery method and whether the customer accesses the software remotely or downloads it locally.

A subscription sold to customers across ten states may be taxable in four, exempt in three, and require deeper review in three more. Zamp’s SaaS taxability by state guide covers current rules, exemptions, and definitions for every state.

Remote employee nexus risk

Economic nexus, or the revenue or transaction threshold that triggers filing obligations in a state, gets most of the attention following South Dakota v. Wayfair in 2018. But physical nexus from remote employees is equally significant for SaaS companies.

A single remote employee working from home in another state can create physical presence there, requiring registration before the company collects a dollar of sales tax in that jurisdiction. Engineers, customer success managers, sales staff, and administrative personnel can all count. Most SaaS companies find out about these obligations only when a state notice arrives.

Zamp’s proactive monitoring covers economic nexus thresholds by state and flags remote employee triggers before they result in back-tax liability.

Billing model complexity

Subscription invoices require per-state taxability determination on each billing cycle. Usage-based billing creates prorated taxability calculations that self-serve platforms may not handle consistently. B2B SaaS sales may qualify for resale or manufacturing exemptions in certain states, requiring certificate collection, storage, and validation processes.

Multi-state registrations must be in place before collection begins, not after. That timing matters because collecting sales tax in a state before registration can create additional compliance exposure.

What changed in 2026

Illinois eliminated its 200-transaction nexus threshold on January 1, 2026. Economic nexus in Illinois is now triggered solely by $100,000 in Illinois sales. Chicago also raised its Personal Property Lease Transaction Tax on software use to 15% as of January 1, 2026. SaaS companies with customers in the Chicago metro now carry a meaningfully higher effective tax rate on those subscriptions.

What to look for in a SaaS sales tax platform

The right SaaS sales tax platform covers the full compliance lifecycle, from nexus exposure monitoring through registration, calculation, filing, notice management, and audit support.

Six capabilities determine fit for a SaaS company:

1. SaaS taxability accuracy. The platform must apply correct taxability determinations for software-as-a-service subscriptions across all relevant states, not general-purpose rules built for physical goods. SaaS taxability rules change as states update their digital goods legislation, and the platform must keep pace.
2. Proactive nexus monitoring. The platform should alert your team before you cross a threshold in a new state, not after a notice arrives. This covers both economic nexus, including revenue and transaction counts, and physical nexus from employee presence.
3. Registration management. Calculating the correct tax rate is not enough if the company is not registered in the state where it is collecting. Full-service platforms handle state registration directly. Software-only tools often leave registration workflow ownership with the customer and their accountant.
4. Billing system integrations. The platform must connect to your actual billing infrastructure: Stripe, Chargebee, NetSuite, QuickBooks Online, Xero, or a developer API. A platform without native integration to your billing system creates manual data entry and reconciliation risk.
5. Liability coverage. Most platforms calculate and file. The question is who bears responsibility if they make an error. Software platforms often put that liability on your company. A managed service can share or assume that liability as a contractual term.
6. Support accessibility. The platform’s support model, response time, and human accessibility determine how your team handles state notices, filing questions, and audit inquiries. The difference between quick expert access and a standard ticket queue matters most during filing deadline windows.

Why do SaaS finance teams switch sales tax platforms?

Finance teams do not switch compliance platforms mid-year for minor reasons. Four patterns drive most platform transitions.

Compliance costs that scale unpredictably. Volume-based pricing models and opaque annual contracts can cause the compliance bill to rise sharply without a corresponding change in the company’s actual obligations. When a strong quarter spikes transaction volume, or when expansion into new product lines increases order counts, the platform invoice can follow unexpectedly. Custom-scoped, all-in-one pricing helps avoid surprise invoices while aligning the service to the company’s actual business footprint.

Support that changes after the initial sale. Enterprise software companies often invest heavily in the pre-sales experience. Finance teams may find that the responsiveness and accessibility they experienced during evaluation does not match what they receive after signing. During filing deadline windows, that gap has direct consequences.

The ownership gap in software-only tools. A platform that calculates tax and files returns still may leave registrations, notice management, proactive nexus monitoring, and audit defense to the finance team. As a SaaS company crosses thresholds in more states, those responsibilities multiply. Many teams find they have traded one manual process for another. Zamp’s managed service covers sales tax audit support and proactive notice management as standard.

Cleanup requirements when switching. Companies moving to a new platform during a growth period often have historical gaps: past-due returns, unregistered states, or taxes miscalculated by a prior system. Platforms that handle cleanup as part of onboarding, including past-due returns, back registrations, and historical remediation, remove a meaningful switching barrier. For context on what that transition looks like, Zamp’s Avalara alternatives and TaxJar alternatives guides cover common switching patterns.

Side-by-side platform comparison

{{ZAMP_BLOG_TABLE:best-sales-tax-platforms-saas-companies:1}}

Best sales tax platforms for SaaS companies in 2026

The platforms below cover different points on the managed-vs.-self-serve spectrum. Each section describes what the platform does, how it supports SaaS compliance, and what type of operating model it is built for.

Here are the six best sales tax platforms for SaaS companies in 2026, ranked by fit for growth-stage subscription businesses:

1. Zamp: flexible managed service with contractual liability coverage and custom-scoped, all-in-one pricing
2. Anrok: SaaS-native software purpose-built for subscription and usage-based billing
3. Avalara: enterprise ERP integrations with SAP, Oracle, and Microsoft Dynamics
4. TaxJar: Stripe-native integration covering US-only compliance with developer API
5. Vertex: enterprise tax calculation engine for SAP and Oracle ERP environments
6. TaxCloud: SST-certified platform covering 24 SST member states

1. Zamp

Best for end-to-end SaaS sales tax compliance

Zamp is a flexible managed sales tax platform for SaaS and ecommerce companies, serving teams from startups to $300M+ companies. It combines an intelligent compliance platform with a team of tax professionals, including former state auditors, to handle the full compliance lifecycle: nexus monitoring, registrations and automated filing, notice management, audit support, and cleanup work for historical gaps.

The service model is the defining distinction. Zamp does not hand the finance team a software product and expects them to run it. The Zamp team takes operational ownership while still giving finance leaders the level of control they want. Finance teams typically onboard in under 2 hours, spend only minutes per month on approvals, and save 20+ hours monthly by moving registrations, filings, notices, and audit support into Zamp’s managed workflow.

Zamp offers two service models. Done for you: Zamp handles everything, the client approves, and Zamp executes registrations, filings, and notices. Done with you: the finance team maintains direct oversight and review while Zamp handles execution. Both models cover the same full service scope. The flexibility makes Zamp workable for controllers who want visibility as well as teams that want compliance fully removed from their responsibilities.

The Zamp Commitment is the liability position that separates Zamp from software-only platforms. If Zamp makes a filing error or misses a deadline, Zamp covers the resulting penalties and interest. Not the customer.

Zamp’s first-party tax data is a technical differentiator that affects accuracy over time. The Zamp team owns and verifies all tax content internally. The platform handles 75,000+ tax notices, and nexus monitoring is forward-looking: 80% of nexus alerts arrive before the company has crossed a state threshold, giving the finance team time to register and avoid back-tax exposure. For SaaS companies billing into multiple states, this proactive posture removes one of the most common triggers for audit exposure.

Key features

• Real-time rooftop-accurate rates across 13,000+ U.S. jurisdictions and 70+ countries
• Proactive nexus monitoring, with 80% of alerts arriving before the threshold is crossed
• Registrations and automated filing handled end to end
• 75,000+ notices handled
• Cleanup work, including past-due returns and back registrations
• First-party, internally verified tax content
• 400 years of combined sales tax expertise, including former state auditors
• International VAT/GST coverage across 70+ countries
• Done-for-you and done-with-you service models
• Zamp Commitment covering penalties and interest when Zamp makes an error

Integrations:Stripe, Chargebee, NetSuite, QuickBooks Online, Xero, Microsoft Dynamics Business Central, and a developer API for custom billing architectures.

Pros

• Flexible managed service covers registrations, filings, notice management, and audit support in a single engagement
• The Zamp Commitment covers penalties and interest when Zamp makes an error
• Onboarding completes in under 2 hours
• Proactive nexus monitoring delivers 80% of alerts before the company has crossed a state threshold
• First-party, internally verified tax content rather than third-party data feeds
• Done-for-you and done-with-you service models accommodate different team operating preferences
• International VAT/GST coverage across 70+ countries from a single platform

Proof points

• 99.9%+ filing accuracy
• 97.8% customer retention in 2025
• 1,200+ finance and accounting teams served
• $300M+ in sales tax remitted
• 100,000+ on-time filings completed
• 200,000+ hours saved across the customer base
• Named Major Player in two 2024 IDC MarketScape reports for tax automation software

Best for

SaaS companies that have grown past the single-state stage and want sales tax removed from their finance team’s plate without losing visibility. The done-for-you service model handles registrations, filings, notices, and audit support under custom-scoped, all-in-one pricing with no per-transaction fees. Teams that prefer more oversight can choose the done-with-you model. The Zamp Commitment’s liability coverage and proactive notice management make Zamp the strongest choice for companies managing compliance across 10 or more states.

Pricing

Zamp uses custom-scoped, all-in-one pricing with no per-transaction fees, no per-filing fees, and no surprise invoices. Registrations, filings, notices, and support are bundled into one engagement. Full details are available on Zamp pricing.

Get sales tax off your plate.Book a call with Zamp

2. Avalara

Service model: Self-serve software

Avalara is one of the largest tax compliance platforms in the US. The platform handles tax calculation, exemption certificate management, and ERP integrations across a broad set of enterprise connectors.

Avalara’s primary value for large enterprises is its depth of ERP integration and its breadth of jurisdiction coverage. For companies running SAP, Oracle, NetSuite, or Microsoft Dynamics, Avalara has established native connectors and a certified implementation partner ecosystem. The platform also supports global tax coverage, with VAT and GST calculation across international markets.

For SaaS companies, Avalara handles product taxability at the SKU level, allowing finance teams to assign taxability codes to subscription and usage-based products. Exemption certificate management through Avalara Exemption Certificate Management supports certificate collection, storage, and validation for B2B SaaS sales qualifying for exemption. Multi-entity structures, relevant for SaaS companies with international subsidiaries or multiple product lines, are supported through the platform’s enterprise configuration.

Avalara’s customer base skews toward large enterprises with dedicated tax teams and ERP-heavy technology stacks. Implementation involves both IT and tax team engagement. For teams considering a transition from Avalara to a managed service, the Zamp vs. Avalara comparison covers the key differences in service model, liability posture, and pricing structure.

Key features

• Tax calculation engine covering US jurisdictions and global VAT/GST
• ERP integrations: SAP, Oracle, NetSuite, Microsoft Dynamics, Salesforce
• Avalara Exemption Certificate Management for certificate collection, storage, and validation
• Multi-entity support for complex corporate structures
• Large certified partner and implementation ecosystem
• Global tax content coverage

3. TaxJar

Service model: Self-serve software | Coverage: US only

TaxJar operates as part of Stripe’s financial infrastructure suite. The platform covers US sales tax calculation, nexus monitoring, and automated filing for ecommerce and SaaS companies.

TaxJar’s deepest integration value is with Stripe. For SaaS companies billing through Stripe, the native connection can support setup and billing workflows. The platform covers US state sales tax nexus monitoring, taxability classification by product type, and state return filing. The developer-friendly API supports custom implementations for companies with non-standard billing architectures.

TaxJar uses a self-serve software model focused on U.S. sales tax calculation, nexus tracking, automated filing, and developer-friendly implementation.

TaxJar is commonly evaluated by SaaS companies looking for U.S. sales tax workflows and Stripe-connected billing operations. For a full breakdown of what teams consider when moving away from TaxJar, Zamp’s TaxJar to Zamp migration guide covers the service model, support, and pricing tradeoffs in detail.

Key features

• US sales tax calculation with product-level taxability classification
• Nexus monitoring across all US states with threshold tracking
• Automated state return filing
• Deep native Stripe billing integration
• Developer API for custom billing architectures
• Multi-channel ecommerce connectors including Shopify, Amazon, and WooCommerce

4. Vertex

Service model: Self-serve software | Coverage: US and global jurisdictions

Vertex is an enterprise tax technology platform with decades of presence in the US corporate tax market. The platform provides high-precision tax calculation across US and global jurisdictions and is designed primarily for large enterprises operating SAP or Oracle ERP environments.

Vertex’s core product is its tax calculation engine, with detailed tax determination at the transaction level. For multinational companies running SAP or Oracle as their core ERP, Vertex’s native integration depth is its primary value driver. The platform supports multi-entity, multi-country tax operations and provides detailed tax reporting and analytics for finance and tax departments.

Vertex’s implementation model typically includes internal IT engagement alongside professional services. The platform is built for enterprise tax teams that manage tax determination as a core function.

For SaaS companies already operating within SAP or Oracle environments, Vertex is often evaluated for enterprise-grade tax calculation and broad multi-country coverage.

Key features

• High-precision tax calculation across US and global jurisdictions
• ERP-native integrations with SAP and Oracle
• Multi-entity and multi-country tax operations support
• Detailed tax reporting and analytics
• Enterprise-grade tax determination rules and configuration
• Dedicated professional services and implementation support

5. Anrok

Service model: Self-serve software | Coverage: US sales tax and international VAT/GST

Anrok is a SaaS-native tax compliance platform built for subscription and usage-based billing models. The platform launched with a focus on the Stripe and Chargebee billing ecosystems and has expanded its integration coverage as it has grown.

Anrok covers US sales tax nexus monitoring and calculation with taxability rules built for SaaS products. The platform tracks economic nexus exposure by state, maps taxability to product SKUs, and handles US state return filing. International VAT and GST coverage is part of Anrok’s broader SaaS compliance positioning.

The platform’s SaaS-specific design makes it a natural fit for SaaS companies evaluating subscription and usage-based billing workflows. Anrok integrates natively with Stripe, Chargebee, NetSuite, and QuickBooks Online, covering the billing and accounting systems used by many early-to-mid stage SaaS companies.

For teams evaluating Anrok against a managed service, Zamp’s Anrok alternatives page covers the service model and liability differences in detail.

Key features

• SaaS-native tax calculation built for subscription and usage-based billing
• Nexus monitoring and exposure tracking across US states
• Billing integrations: Stripe, Chargebee, NetSuite, QuickBooks Online
• US state return filing
• International VAT/GST coverage
• Developer API

6. TaxCloud

Service model: Self-serve software | Coverage: US only

TaxCloud is a US sales tax compliance platform that participates in the Streamlined Sales Tax program. SST participation allows TaxCloud to support tax calculation and filing workflows for participating states, making it a commonly evaluated option for sellers with straightforward US compliance needs.

TaxCloud covers sales tax calculation, return filing, and exemption certificate management for US-based sellers. The SST-based approach covers a broad set of US states including Washington, Wisconsin, Georgia, Indiana, and Kentucky.

TaxCloud’s design is oriented toward ecommerce sellers on platforms like Shopify and WooCommerce. TaxCloud is commonly evaluated by U.S.-based companies that want SST-certified sales tax calculation and filing support across participating states.

Key features

• SST-certified tax calculation and filing for 24 member states
• US sales tax exemption certificate management
• Integrations with Shopify, WooCommerce, and select APIs
• Streamlined Sales Tax program participation
• US-only coverage

Zamp capabilities at a glance

{{ZAMP_BLOG_TABLE:best-sales-tax-platforms-saas-companies:2}}

Managed vs. self-serve: what it means for compliance risk

The most consequential decision in selecting a SaaS sales tax platform is not which features the software advertises. It is whether you want a software tool that calculates and files, or a service that owns the outcome.

Self-serve platforms return tax rates, file returns on schedule, and monitor nexus thresholds. The company still determines how much internal ownership it wants to keep over registrations, notices, audit responses, billing model taxability questions, and cross-state compliance operations.

Managed services take ownership of those execution steps. Nexus monitoring is proactive, not reactive. Registrations happen before thresholds are crossed. Notices are monitored and resolved by tax specialists. When a state auditor requests records, the managed service supports the response. The finance team approves decisions. The service handles execution, liability, and ongoing compliance operations.

The liability distinction runs directly parallel to the ownership distinction. Most self-serve platforms include terms that make clear that errors are the customer’s financial responsibility. The Zamp Commitment takes the opposite position: if Zamp makes a filing error or misses a deadline, Zamp covers the penalties and interest. That is a meaningful difference for a finance team managing multi-state SaaS compliance across 10, 20, or 30 jurisdictions.

Data ownership is a third dimension that affects long-term accuracy. Platforms that source their tax content from third-party data vendors depend on the quality and recency of that data. Zamp owns and maintains its tax content internally. Rate changes, state law updates, and jurisdiction rule modifications are verified by the Zamp team before application, not pulled from a third-party data feed.

For SaaS companies evaluating this tradeoff, the core question is: how much of your finance team’s capacity do you want dedicated to sales tax execution? For most growing SaaS companies, that capacity is better spent elsewhere. Zamp’s best sales tax compliance software guide provides a broader decision framework.

Which sales tax platform is right for your SaaS company?

The right platform depends on three factors: your billing model, your team’s compliance capacity, and how you want liability distributed between your company and your vendor.

If your priority is SaaS-native calculation with in-house compliance management, evaluate platforms built specifically for subscription and usage-based billing models with native connections to your billing system. Assess whether the operating model matches your internal capacity, and plan for the registration, notice management, and audit support responsibilities that remain with your team.

If you operate a large enterprise with SAP or Oracle as your core ERP, evaluate platforms with certified ERP integrations, enterprise-grade multi-entity support, and dedicated implementation resources. Budget for an implementation process involving both IT and internal tax team engagement.

If your company is scaling quickly across new states, the most important capabilities are proactive nexus monitoring before thresholds are crossed and registration management before collection starts. Reactive tools increase the risk of collecting tax in states where you are not yet registered.

If your priority is removing sales tax from your finance team’s responsibilities entirely, the critical capabilities are flexible managed service ownership, contractual liability sharing, proactive notice management, cleanup support for historical registration gaps, and custom-scoped, all-in-one pricing. These criteria describe Zamp’s managed service model.

The managed-vs.-self-serve decision is ultimately a question of how your finance team spends its time. Software platforms assume the finance team will execute. Zamp gives finance teams a way to keep oversight while moving execution to dedicated sales tax specialists.

Final verdict

Based on our analysis of six platforms across service models, liability coverage, SaaS taxability accuracy, and support, Zamp is the best sales tax platform for SaaS companies in 2026. The flexible managed service model, the Zamp Commitment’s liability sharing, and proactive notice management directly address the three failure modes that affect growing SaaS companies on self-serve platforms: the ownership gap, the liability exposure, and the notice management burden that arrives without warning.

Zamp is the best choice for SaaS companies that have crossed the single-state stage and want compliance removed from their finance team’s plate without losing control. Zamp combines flexible managed service ownership, contractual liability coverage, expert support, and custom-scoped, all-in-one pricing under one engagement.

Zamp handles sales tax for SaaS companies with custom-scoped, all-in-one pricing, no per-transaction fees, no per-filing fees, and no surprise invoices, and has remitted over $300 million in sales tax on behalf of its clients. In 2025, 97.8% of businesses that partnered with Zamp chose to stay.

Get started with Zamp

Frequently asked questions

Which states tax SaaS products?

More than two dozen US jurisdictions tax some form of SaaS in 2026. States with broad SaaS taxation include Texas, New York, Washington, Pennsylvania, and Ohio. States where SaaS is generally exempt include California, Florida, and Virginia. The rules differ by state and often depend on delivery method, whether the customer is B2B or B2C, and how the product and contract are structured. Rules change as states update their digital goods legislation, making ongoing monitoring necessary.

Do SaaS companies need to collect sales tax?

Yes, in states where SaaS is taxable and where the company has established a nexus. Nexus is created by crossing a state’s economic nexus threshold or by having employees, contractors, or servers based in a state. Once nexus is established, the company must register, collect, and remit sales tax on taxable SaaS sales in that jurisdiction. Failure to register before collecting creates back-tax liability.

How does Zamp help SaaS companies manage nexus?

Zamp monitors economic nexus thresholds and physical nexus triggers so SaaS companies can identify registration obligations before they become larger compliance problems. Zamp tracks state-by-state exposure, flags upcoming thresholds, supports remote employee nexus review, and handles registrations once a company needs to collect and remit tax.

How does Zamp price sales tax compliance for SaaS companies?

Zamp uses custom-scoped, all-in-one pricing based on your actual business footprint. That means registrations, filings, notices, expert support, and compliance workflows are bundled into one engagement, with no per-transaction fees, no per-filing fees, and no surprise invoices. SaaS companies can start with a free nexus assessment, taxability review, exposure estimate, 30-minute expert consultation, and API sandbox before moving into U.S. or Global managed compliance.

What is the difference between Zamp’s done-for-you and done-with-you models?

Zamp’s done-for-you model is built for teams that want Zamp to handle sales tax execution end to end. The client approves, and Zamp manages registrations, filings, notices, and compliance workflows. The done-with-you model gives finance teams more oversight and review while Zamp still handles the execution. Both models include access to sales tax specialists and the same core compliance support.

What happens if Zamp makes a filing error?

Under the Zamp Commitment, if Zamp makes a filing error or misses a deadline, Zamp covers the resulting penalties and interest. This is a major distinction from software-only models where compliance liability often remains with the business using the platform.

Can Zamp support SaaS companies selling internationally?

Yes. Zamp supports U.S. sales tax and global VAT/GST coverage across 70+ countries. For SaaS companies selling into international markets, Zamp can support VAT/GST calculations, international thresholds, global registrations, and multi-country filing through its Global managed compliance service.

How do remote employees create a sales tax nexus for SaaS companies?

A remote employee working from home in another state can create physical nexus in that state, regardless of the company’s revenue from customers there. This applies to engineers, sales staff, customer success managers, marketers, and administrative personnel. Physical nexus can trigger registration obligations in that state, even if the economic nexus threshold has not been crossed.

What is the difference between sales tax and VAT for SaaS companies?

US sales tax and international VAT both apply to SaaS products but operate differently. US sales tax is collected by the seller from the customer at the point of sale and remitted to state governments. Each of the 45 states that collects sales tax sets its own rules. VAT, or Value Added Tax, is a multi-stage tax applied at each step of the supply chain and governs digital services in over 170 countries, including the EU, UK, Canada, and Australia. SaaS companies selling internationally face VAT obligations in addition to US state sales tax obligations. Zamp can support both U.S. sales tax and international VAT/GST from one platform.