SaaS taxability, exemption certificates and filing, from checkout to filed return.
Real-time tax calculation at checkout, nexus and exposure monitoring, exemption certificates, app store and partner marketplace tax, e-invoicing and multi-jurisdiction filing. B2B buyer tax IDs verified live against official sources, so every reverse charge is documented for audit.
Every new market means a new tax obligation. SaaS revenue crosses jurisdictions the moment a customer signs up — and the rules differ everywhere.
SaaS sold to EU consumers triggers VAT at the customer's country rate. B2C requires OSS registration. B2B requires verified buyer TINs for reverse charge. Every member state enforces its own rate and threshold rules.
SaaS taxability is not uniform across the US. Some states tax it as tangible personal property, others as a digital good, others exempt it entirely. Economic nexus thresholds trigger obligations state by state as your ARR grows.
Cross-border B2B SaaS sales qualify for reverse charge treatment — but only when the buyer's VAT registration is verified in real time. Invalid TINs mean you owe the VAT. No verification, no exemption.
EU member states are rolling out mandatory e-invoicing for B2B transactions. Every invoice must carry a verified seller and buyer TIN in the destination country's required format. Non-compliance means rejected invoices and delayed revenue.
Two engines working on a shared identity foundation. Tax Identity verifies the buyer. Indirect Tax calculates, collects, and files. One integration covers the entire obligation chain.
At checkout, onboarding, or invoice generation, the Tax Identity engine validates the customer's TIN against official tax authority databases. B2B buyers with a verified TIN qualify for reverse charge. Unverified buyers receive standard tax treatment. Business registry data enriches the customer record for e-invoicing compliance.
The Indirect Tax engine evaluates the transaction jurisdiction, product classification, buyer tax status, and any applicable exemptions to return the exact tax amount. Overlapping US jurisdictions (state, county, city, district), EU VAT rates, GST regimes, and reverse charge logic are resolved in a single API call.
Transaction data flows into jurisdiction-specific returns — US state filings, EU OSS returns, UK VAT returns, GST BAS statements. Registration management, filing calendar tracking, and remittance are handled end-to-end. One dashboard for every jurisdiction where you have obligations.
SaaS companies primarily run on two of the three TaxDo engines. Each operates independently, but they share the same verified identity foundation.
Verify customer TINs for B2B reverse charge eligibility. Validate business registrations for exempt sales. Ensure every invoice carries a verified TIN for e-invoicing mandates. 130+ countries, real-time.
Real-time tax calculation for every transaction. Nexus and exposure monitoring across all 50 US states. VAT, GST, and Sales Tax filing across 150+ jurisdictions. One engine, every billing model.
SaaS companies that also operate a marketplace or facilitate third-party transactions may trigger DAC7 platform reporting obligations. The Regulatory compliance engine is available on the same platform — activate it when your business model requires it.
Learn MoreSeven capabilities that keep SaaS revenue compliant — from checkout calculation through filed returns, each powered by the shared identity layer, each operational from day one.
A single API call returns the correct tax amount for any transaction. The engine evaluates buyer jurisdiction, product classification, tax status, exemptions, and overlapping rate layers — US state/county/city/district, EU member state rates, GST regimes — in milliseconds.
Automates the full certificate lifecycle — collection at checkout or onboarding, format and completeness validation, secure storage, expiry tracking, and auto-application at point of sale. Covers reseller, government, non-profit, and jurisdiction-specific digital product exemptions. Automated renewal workflows trigger before certificates expire.
SaaS companies with app stores, plugin marketplaces, or partner ecosystems trigger marketplace facilitator obligations. When third parties sell through your platform, you become the entity responsible for collecting and remitting tax on their transactions. TaxDo applies facilitator rules per jurisdiction automatically — so your marketplace grows without creating compliance debt. Jurisdiction-level facilitator rule application across US states and international regimes.
Tracks your revenue and transaction counts against every US state's economic nexus thresholds in real time. Alerts trigger before you cross a threshold — not after. Registration guidance and timeline management follow automatically. Where a threshold is already behind you, a voluntary disclosure agreement can close the gap. Threshold tracking updates as state rules change.
Ensures every invoice meets the destination country's e-invoicing format and data requirements. Seller and buyer TINs are verified and embedded. Supports Peppol, FatturaPA, Factur-X, XRechnung, and emerging mandates as EU member states roll out requirements. TIN verification from the Tax Identity engine is native — no separate integration needed.
Transaction data flows into jurisdiction-specific returns — US state sales tax filings, EU OSS returns, UK VAT returns, GST BAS statements, and local regime filings. Registration management, filing calendar tracking, and remittance are handled from a single dashboard. End-to-end from return preparation through submission.
VAT number verification validates buyer VAT registrations against official tax authority databases at the point of sale or invoice generation. A verified TIN triggers reverse charge treatment automatically. An invalid or missing TIN triggers standard VAT collection. No manual lookup required.
TaxDo is cloud-native SaaS. REST APIs integrate directly into your billing and subscription management systems. No on-premise installation, no multi-month implementation.
RESTful APIs for tax calculation, TIN validation, and exemption management. Embed compliance directly into your billing flow.
Native integrations with Stripe, Chargebee, Recurly, and major subscription billing platforms. Plug in and go.
No provisioning. No infrastructure. Standard REST integration with comprehensive documentation. From contract to live compliance in weeks.
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SaaS taxability varies by state. Some states treat SaaS as taxable tangible personal property, others classify it as a non-taxable service, and several have created specific digital product categories with their own rules. TaxDo's Indirect Tax engine maintains current taxability classifications for all 50 states plus DC, applying the correct treatment automatically at checkout based on the product type, buyer location, and applicable exemptions.
SaaS sold to EU consumers (B2C) is subject to VAT at the customer's country rate under the EU digital services rules. The One Stop Shop (OSS) simplifies filing by allowing a single registration to cover all EU member states. For B2B sales, the reverse charge mechanism shifts the VAT liability to the buyer — but only when the buyer's VAT registration is verified. TaxDo automates both paths: OSS registration and filing for B2C, and real-time TIN verification for B2B reverse charge eligibility.
Economic nexus is the threshold — typically defined by revenue or transaction count — at which a SaaS company becomes obligated to collect and remit sales tax in a US state, even without physical presence there. Since the 2018 Wayfair decision, every state with a sales tax enforces economic nexus thresholds. SaaS companies selling nationally cross these thresholds rapidly as ARR scales. TaxDo tracks your exposure against every state's thresholds in real time and alerts before obligations trigger.
When a SaaS company sells B2B across EU borders, the reverse charge mechanism shifts VAT liability to the buyer — but only when the buyer's business status and VAT registration are verified. TaxDo's Tax Identity engine validates the buyer's TIN against official tax authority databases in real time during checkout or invoicing. A verified TIN triggers the correct reverse charge treatment automatically. An invalid or missing TIN triggers standard VAT collection. No manual lookup, no risk of misapplication.
Yes. TaxDo automates the full exemption certificate lifecycle — collection from buyers at checkout or onboarding, validation of certificate completeness and format, secure storage with expiry tracking, and automatic application of valid exemptions at the point of sale. When certificates expire, the system triggers renewal workflows before the next transaction. This covers reseller certificates, government exemptions, non-profit status, and jurisdiction-specific digital product exemptions.
TaxDo's calculation engine handles any billing model — flat subscription, usage-based, seat-based, hybrid, or consumption tiers. The engine evaluates each line item against jurisdiction-specific rules at the point of invoice generation. For usage-based billing, tax is calculated on each metered charge against the buyer's jurisdiction and tax status. Multi-currency conversion, proration, and mid-cycle upgrades are handled natively.
E-invoicing mandates require businesses to issue structured electronic invoices that meet jurisdiction-specific format and data requirements. The EU is rolling out mandatory e-invoicing across member states, with France, Germany, and Italy leading adoption. Every e-invoice requires a valid seller and buyer TIN. For SaaS companies issuing thousands of invoices monthly, TaxDo ensures every invoice carries a verified TIN and meets the destination country's format requirements — from Peppol to FatturaPA to Factur-X.
Pure SaaS companies without marketplace or platform activity typically do not have Tax Transparency reporting obligations under DAC7, CRS, or CARF. However, SaaS companies that also operate a marketplace, facilitate third-party transactions, or hold customer funds may trigger DAC7 platform reporting obligations. TaxDo's Tax Transparency engine is available on the same platform — if your business model evolves to include marketplace activity, you activate the engine without a new integration.
SaaS companies start with Tax Identity and Indirect Tax. The full OS is there when your obligations expand.
TIN validation, business registry verification, and identity intelligence across 130+ countries. The foundation layer that powers reverse charge eligibility and e-invoicing compliance.
Real-time tax calculation, nexus monitoring, registration management, exemption certificates, and automated filing across 150+ jurisdictions. Every billing model, every tax regime.
CRS 2.0, DAC8, CARF, DAC7, and FATCA intelligence and reporting. Available on the same platform if your SaaS evolves into a marketplace or platform model.
Real-time calculation, nexus monitoring, B2B TIN verification, and automated filing — live in weeks, not quarters.
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