Short answer: cross-border SaaS sales raise two main tax questions: permanent establishment and place-of-supply rules for VAT and digital services taxes. Both can create an obligation to register and remit tax in a foreign jurisdiction even if you have no physical presence there. The safe contractual move is to shift
Most states now tax SaaS in some form, and since the Supreme Court’s 2018 Wayfair decision you can be required to collect sales tax in states where you have no office at all, based purely on your sales volume there.
SaaS revenue recognition follows different rules, and different instincts, than traditional perpetual-software licensing.
Short answer: sales tax on software is a state-by-state question, you are liable for it whether or not you collected it, and since the 2018 Wayfair decision you can owe it in states where you have no office at all. Here are the practical things to remember. This is a
Five contract terms drive when a software or SaaS vendor can recognize revenue under ASC 606: acceptance, refund-style warranties, future deliverables, a signed agreement, and a clear, collectable fee.
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