SaaS Sales Tax in New Hampshire

New Hampshire does not currently impose a state-level sales tax, including on Software as a Service (SaaS). Therefore, businesses selling SaaS in New Hampshire are not required to charge or collect sales tax. However, it is important to note that this is subject to change, as the state legislature continues to evaluate potential revenue sources. Therefore, it is crucial for SaaS businesses to stay informed about any potential future sales tax implementations.

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New Hampshire

New Hampshire is phasing out its interest and dividend income tax from 4% to 3% in 2024, reflecting a commitment to reducing the tax burden on residents.

Official government link: NH Department of Revenue Administration

0.00%

E-products and services VAT/Sales tax rate

Reverse charge mechanism for B2B sales

Not applicable in the US

Tax ID validation required

No state sales tax; tax ID may be required for other purposes

When do you have to register

No state sales tax; registration not required.

Online registration possible

Yes

Registration procedure

No state sales tax or corporate income tax.
Register with the New Hampshire Secretary of State to qualify as a foreign corporation or LLC.
Appoint a New Hampshire registered agent if necessary

List of digital and electronic services liable for tax

Not applicable, New Hampshire doesn’t have a state sales tax but may charge locally

Penalties

No state sales tax; penalties vary by local jurisdiction

Registration threshold

No threshold

Filing interval

No state sales tax

Filing deadline

No state sales tax

E-invoicing requirements

No state sales tax, no e-invoicing mandate

Record keeping

No state income tax: N/A

Effortless Subscription Management and Billing

New Hampshire SaaS Sales: Key Requirements

Since there is no state-level sales tax in New Hampshire, there are no specific compliance requirements, such as filing frequency, payment deadlines, or record-keeping obligations. However, it is still important for businesses to maintain accurate records of their sales, including the location of their customers, to ensure they are prepared for any future changes in tax regulations.

Multi-currency support

Implement Efficient Systems & Consider E-Invoicing

Given the potential for future sales tax implementations in New Hampshire, it is advisable for SaaS businesses to implement efficient systems for managing tax compliance. This may include investing in tax automation software or consulting with tax professionals to ensure they are prepared for any future requirements. Additionally, exploring the benefits of e-invoicing can simplify record-keeping and improve efficiency.

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