I lead product for one of the leading US sales tax solutions, and have also built products automating EU VAT solutions. I came into these roles with little subject matter expertise, but with enthusiasm for making it easier for small businesses to thrive. So, take these inputs with that perspective, please.
VAT tax rate calculations are trivial, but filing returns is complex.
Sales tax calculations are complex, and so is filing returns. Also, the reseller tax exemptions are not easy (in fact, most tax audit fines come from poor records around tax exemption, not from collecting the wrong amount of tax). As someone operating a SaaS business in the US, I wish we had a VAT system.
It's also worth understanding that in many states, sales taxes are the primary way that local governments can directly generate revenues. To simplify the US tax system, we first need to solve how we equitably fund local governments.
VAT tax rate calculations are trivial, but filing returns is complex.
Sales tax calculations are complex, and so is filing returns. Also, the reseller tax exemptions are not easy (in fact, most tax audit fines come from poor records around tax exemption, not from collecting the wrong amount of tax). As someone operating a SaaS business in the US, I wish we had a VAT system.
It's also worth understanding that in many states, sales taxes are the primary way that local governments can directly generate revenues. To simplify the US tax system, we first need to solve how we equitably fund local governments.