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Taxation Digital services

GrahamV

New member
Nov 10, 2020
14
2
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Hi Members,

I have been looking around for quite some time to figure out the taxation for subscriptions and advertisements on our app.
Our company (LLC-Delaware) has an App that customers can download from the Android & iOS store.

In our app people can sign up their company and pay for a yearly subscription to get a listing of their business on our app, also they are allowed to advertise products or services that will cost also an X amount.

This is seen as a digital service and in some States, they do not calculate tax but in some states they do. Is this true? Our app can only input tax per country and not state. So we will need to re-develop this if this is true.

What I could find is:
Colorado 2.9%

Alaska 0.0%

Alabama 4%

Arizona 5.6%

Connecticut 6.35%

Hawaii 4%

Iowa 6%

Idaho 6%

Indiana 7%

Kentucky 6%

Louisiana 4.45%

Maine 5.5%

Minnesota 6.875%

Mississippi 7%

North Carolina 4.75%

New Jersey 6.625%

New Mexico 5.125%

Ohio 5.75%

Pennsylvania 6%

South Carolina 6%

South Dakota 4.5%

Tennessee 7%

Texas 6.25%

Utah 4.85%

Vermont 6%

Washington 6.5%

Wyoming 4%