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Dec 17, 2024
How does Alabama classify and tax Software as a Service (SaaS) products?
In Alabama, Software as a Service (SaaS) is classified as taxable, treated similarly to tangible personal property. This means SaaS subscriptions are subject to the combined state and local sales tax rates. Businesses providing or purchasing SaaS must account for these taxes in their financial planning, ensuring they collect and remit the appropriate amounts to comply with state tax regulations.



