California has amended its Revenue and Taxation Code under Senate Bill 122 to impose sales and use tax on digital products and services from 1 January 2027. The tax rate is 7.25% plus local rates, and providers must register once they exceed economic or physical nexus thresholds of USD 500,000 or have a physical presence.
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VatIT · about 13 hours ago
California will tax SaaS and digital prewritten software from 1 January 2027, regardless of delivery method. The state rate is 7.25%, rising above 10% with local rates. Buyers with receipts over $5 million must self-assess use tax.
CNBC · 4 days ago
The United States has announced a 25% tariff on most Brazilian imports, effective 22 July 2026, under Section 301 of the Trade Act. The measure targets alleged unfair trade practices, with exemptions for goods such as beef, orange juice, aircraft parts and energy products, and a potential additional 12.5% duty if a forced-labour probe concludes.
1stopVAT · 4 days ago
Colorado expands sales tax to digital software under House Bill 26-1223, effective 1 January 2027. The bill removes exemptions for downloaded and remotely accessible software, potentially including SaaS.
CryptoBriefing · 4 days ago
The United States will impose a 25% tariff on most goods imported from Brazil starting 22 July 2026. The measure, triggered by a Section 301 investigation over digital trade and deforestation concerns, exempts products such as beef, coffee, and aircraft parts.
VatCalc · 5 days ago
Utah has widened its sales and use tax rules for digital products, bringing many streaming and subscription-based digital services into the tax net from 1 July 2026. The new law, Senate Bill 162, taxes payments for access to digital content regardless of delivery method.
Hellotax · 6 days ago
Europe: US e-commerce sellers face complex VAT registration when expanding into multiple EU markets. The article outlines how a US parent company must separately register for VAT in Germany, France and the Netherlands, and explains the need for distinct legal entities and EORI numbers. It also discusses the importance of aligning stock locations with VAT obligations to avoid backdated filings.
Key Takeaways
From 1 January 2027, California's SB 122 imposes sales and use tax on digital products and services.
From 1 January 2027, California requires digital product suppliers to register if they exceed an economic nexus threshold of USD 500,000 or have a physical presence such as employees, offices, or warehouses in California.
From 1 January 2027, California's base sales tax rate for digital products is 7.25% plus local rates based on the buyer's location.
From 1 January 2027, California exempts custom software, e-books, digital audio/video, video games, professional consulting, and data processing services.
From 1 January 2027, California's B2B self-remittance threshold is USD 5 million; above this, the buyer accounts for tax.
Primary source
Read the full article at 1StopVATThis summary was published on VATfaqs.com on 6 July 2026. It relates to VAT developments in United States. The original source is 1StopVAT.
