topic Online subscriptions in Get your taxes done using TurboTax

Online subscriptions

nomad19088 — Sun, 04 Apr 2021 00:55:22 GMT

Do I have to pay sales tax on online subscription services?

Re: Online subscriptions

MaryK4 — Sun, 04 Apr 2021 02:44:10 GMT

If you mean for online services, some states treat SaaS similarly to prewritten software purchased and downloaded via the Internet, whereas others see this as a service, which may or may not be taxable.

Re: Online subscriptions

nomad19088 — Sun, 04 Apr 2021 21:25:48 GMT

What states are exempt?

Re: Online subscriptions

KathrynG3 — Mon, 05 Apr 2021 20:03:02 GMT

Alaska, Delaware, Montana, New Hampshire, and Oregon do not have sales tax.

However, for the particular treatment of software for a service, I recommend contacting your state directly.

See: How do I contact my state Department of Revenue?

Re: Online subscriptions

nomad19088 — Sat, 10 Apr 2021 03:37:13 GMT

What about Ohio?

Re: Online subscriptions

KathrynG3 — Sat, 10 Apr 2021 19:05:43 GMT

Ohio Revised Code Section 5739.01 effective March 27, 2020 states SaaS is taxable for business use in Ohio, but non-taxable for personal use.

It is best to seek a local tax professional regarding sales tax to determine whether you have sales tax nexus, or a significant presence in the state.

For more information, see: Ohio Department of Taxation - Sales and Use - General Information.

Re: Online subscriptions

nomad19088 — Sat, 10 Apr 2021 23:59:59 GMT

So an online purchase from Legalzoom does not apply?