Should We Be Collecting US Taxes from our Clients if We're Based in the USA?

MilesN

It's almost the tax deadline, April 15th, and that got me thinking about USA taxes for hosting and if those of us based in the USA should be collecting them or not. My thoughts veered in many directions, even SaaS and if that's a taxable item.

The first answer you hear from most is "no, it's a non-tangible product and can't be taxed" but this also depends on your State and the item that they purchase.

I'm not wanting to target hosting companies on whether you do or do not ask for taxes for clients, I'm only curious of your opinion if we should bother collecting them?

cloudmate

All Hosting Services including Domains and SSL Certificates are Liable for US Taxes, EU Taxes and whatever country's Taxes. Its limited to Inside Country. It means that if your business belongs to US, You have to charge taxes only on US Citizens as per given Tax Formalities. You cannot charge Tax on Any Export Invoices. These points can be clarified by EU Tax VAT and IN Tax GST which states Taxes will not be charged on any Export invoices and are Zero rated.

MoChesk

It's a good inquiry and I think web hosting services should make their tax options more clear for everyday users. Having their tax liabilities clearly laid out, will only help their online presence.

Oliver

This is rather interesting. I wonder how the tax laws affect people that don't reside in the US.