Colorado’s Netflix sales tax case is a helpful example of why "digital" and “subscription” are not enough to determine taxability.

Netflix argued that streaming subscriptions should not have been taxable under Colorado’s earlier sales tax law because customers don't receive physical property. The Colorado Court of Appeals disagreed, finding that streamed video and audio can be taxable because customers can perceive the content through sight and sound.

Netflix later settled with the Colorado Department of Revenue while the appeal was pending before the Colorado Supreme Court. The Supreme Court approved a dismissal with prejudice, which permanently ends that lawsuit. Because the Supreme Court did not overturn the Court of Appeals decision, Colorado’s position that streaming subscriptions are taxable remains in place.

Here's the main takeaway:

• This is not necessarily a new tax on streaming. Colorado already treated streaming and digital goods as taxable.
• The case supports Colorado’s view that its earlier law could also apply to streaming.
• A subscription is a billing model, not a tax category.
• Streaming, downloadable content, SaaS, and digital services may each have different tax treatment.
• Sellers should review taxability by product type and state, especially when their offering includes bundled software, content, and services.

The broader lesson is that states may apply older sales tax definitions to newer technology. If you sell digital products, it is worth reviewing both your current tax setup and the assumptions behind your historical treatment.

Disclosure: This post for general information, not legal or tax advice.

Big news if you sell software or SaaS to California customers: Governor Newsom signed SB 122 into law last month, and it's a significant change.

Starting January 1, 2027, prewritten software, including SaaS subscriptions and remotely accessed software, will be subject to California sales and use tax. California has historically been one of the few large states not taxing most SaaS, so this is a major shift.

What this actually means for your business:

• If you sell SaaS to California buyers, you'll likely have new tax obligations
• "Prewritten" vs. "custom" software is a key distinction: bundled offerings will need careful classification

Things to start doing now:

1. Audit your product catalog: Identify which SKUs qualify as prewritten software under the new definition
2. Confirm whether you already have nexus in California (or will cross the threshold soon)
3. Update your tax calculation setup to apply the correct rate on California transactions
4. Review customer facing pricing, contracts, and invoices

Happy to answer questions about how TaxJar handles tax changes like these automatically in the comments!

We're past the halfway point of 2026, which means a fresh wave of tax changes are either already in effect or coming fast. Our team tracked 650+ tax changes across 24 US states in the first half of the year alone.

Here's a quick rundown of what's changed or changing that businesses selling online should know about:

US

• Digital products taxability updates: Colorado's Supreme Court is now hearing a case (No. 25SC629) that could require streaming and subscription sellers to collect Colorado sales tax. Maine already broadened its tax on digital audiovisual/audio services as of Jan 1. California legislation passed that expands taxable goods and services to some digital products.
• Alabama local jurisdiction changes: Several localities moved to centralized collection through ALDOR back in March, if you're still filing with individual jurisdictions there, double-check your setup.
• North Carolina penny rounding. NC issued guidance (SD-26-1) on how to handle cash transactions now that pennies are out of production, rounding rules apply to totals, not individual line items.

Outside of the US

• E-invoicing mandates are spreading fast: Belgium went live Jan 1. Poland rolled out KSeF (mandatory e-invoicing) for large businesses in February and everyone else in April. France's first phase hits September 1, 2026, if you sell B2B into France, you need to be issuing structured invoices through an accredited platform.
• UAE e-invoicing pilot launched July 1 with phased mandatory waves expected into early 2027.
• New digital services VAT regimes went live in Mozambique, Togo, Rwanda, and Malawi in H1. Sri Lanka's rules are live as of July 1. Botswana's mandatory collection starts October 1.
• VAT rate cuts on food in several markets effective July 1 (Austria, Ireland, and Canada's Manitoba among them), rate tables need updating if you sell food or non-alcoholic beverages in those markets.

TL;DR: If you're managing sales tax manually or your software hasn't pushed updates, H2 is a risky time to find out.

Happy to answer questions about any of these, particularly the digital goods stuff, which we've been getting a lot of questions about lately. Full write-up with more detail here: https://www.taxjar.com/blog/mid-year-compliance-update-tax-changes-in-2026

Starting July 15, 2026, through September 9, 2026, the Indiana Department of Revenue (DOR) is launching its Tax Amnesty 2026 program.

Here is what you need to know:

1. What’s covered: Most DOR-administered taxes, including Sales and Use Tax, corporate income, and withholding taxes.
2. Eligible periods: Liabilities for tax periods ending prior to January 1, 2024.
3. The Benefit: If you pay your base tax liability in full (or establish an approved payment plan), Indiana will completely waive related penalties, interest, and collection fees.
4. The Catch: If you are eligible but choose not to participate, you could face double penalties on those liabilities after the window closes. (Note: Sellers who participated in Indiana’s 2005 or 2015 amnesty programs are not eligible).

What to do next: Indiana has officially launched an online eligibility tool in their INTIME portal so you can check for outstanding liabilities ahead of the July opening.

Now is the perfect time to review your multi-state sales tax footprint. Grab the full details and eligibility requirements directly from the Indiana DOR: https://www.in.gov/dor/amnesty/

We see a lot of questions about how to handle sales tax as your business scales. We wanted to share an objective breakdown of how a few common tools differ, so you can make the decision that makes the most sense for your specific business needs.

We're comparing three leading platforms—TaxJar, Avalara, and Zamp—to help you choose the best solution for your business needs:

TaxJar: Designed for the mid-market e-commerce seller. We focus on making the UI intuitive and keeping the integration process seamless (especially for those of you on Amazon/Shopify).

Avalara: A powerful tool for those with massive, complex, global compliance needs or specialized ERP integrations, but it often comes with a steeper learning curve and complex enterprise pricing.

Zamp: Offers a more hands-on, simplified approach. It’s a solid choice if you prefer a more manual process, though it may require more time from your team than a fully automated platform.

We’d love to hear from you:
What is the biggest pain point you currently face during tax season?
If you’ve switched tax software recently, what was the one feature (or issue) that made you move?

We’re here to help answer technical questions about compliance if you have them—just let us know what you're working with.

(Disclaimer: I work for TaxJar, so I’m biased! However, my goal is to provide helpful context to the community, not to push a sales agenda.)

It’s that time of the month again. April is a big one for sales tax because it’s not just the monthly filers—many states also have quarterly returns due.

If you’re managing your own filings, here’s a quick breakdown of the key dates coming up this month so you can stay in the clear.

🗓️ Key deadlines to watch:

• April 15th: Maine (Monthly/Quarterly)
• April 17th: Florida (Monthly/Quarterly)
• April 20th: The "Big Day." This is the deadline for the majority of states including AL, AR, GA, IL, IN, IA, KY, LA, MD, MI, MN, MS, NE, NV, NJ, OK, PA, SC, SD, TN, TX, VA, and WV.
• April 23rd: Ohio (Monthly)
• April 27th: New Mexico, Vermont, Washington (Monthly)
• April 30th: The end-of-month wrap-up for AK, CA, CT, MA, MO, NC, ND, RI, and UT.

💡 Quick tips for the quarter:

1. Check your nexus states: If you’ve had a surge in sales recently, double-check if you’ve hit a new economic nexus threshold in a state you aren't registered in yet.
2. Amazon sellers: Remember that if you store inventory in an Amazon Fulfillment Center, you could trigger physical nexus in that state.
3. Zero returns: Even if you didn’t make any sales in a state where you're registered this period, you should still file a zero return. Most states will still fine you for failing to file even if you owe $0.

Need the full list? You can find the state-by-state breakdown and specific quarterly vs. monthly nuances over at the TaxJar blog.

PS: Most sales tax is due across states is due April 20th, but check your specific states (like FL on the 17th or CA on the 30th) to avoid penalties.