Type: Legislation
A 7% sales tax is due from companies that offer consumers digital services. Mississippi is the latest US state to apply its state sales tax on a variety of digital services. This will be implemented as of July 1, 2023.
This is accomplished by modernizing the definition of telecommunications services. These new services are included in the following scope:
- Computer Software
- Computer Software Services,
- Specified Digital Products; or
- Other Products Delivered Electronically
A $250,000 annual threshold for sales tax applies to non-residents. In Mississippi, there is no transactional threshold. In September 2018, the state enacted the economic nexus system, requiring out-of-state or non-resident businesses to pay taxes. This came after the 2018 South Dakota vs Wayfair ruling.
Effective date: 1 July 2023