My Companys software license agreement includes a provision designated, “Taxes,” which provides that the licensee is responsible for all taxes. As a seller, do I need to collect sales taxes?
This provision is fairly common in software license agreements. This provision does not absolve your company of its responsibility to collect sales and use taxes. If your company undergoes a sales and use tax audit, it could be assessed for the sales tax you failed to collect plus penalties and interest.
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