What Every Business Buying Software Needs to Know Before 2027 with Vertex & KPMG
Beginning January 1, 2027, California SB 122 will expand sales and use tax to certain software transactions, including downloaded software and Software-as-a-Service (SaaS).
Many businesses assume that if a vendor invoice doesn't include tax, no further action is needed. However, under SB 122, purchasers may be responsible for identifying, reporting, and remitting use tax on qualifying software purchases. This applies even to organizations that don't exceed the legislation's $5 million supplier threshold.
Join tax and compliance specialists from Vertex and KPMG for a practical discussion on what SB 122 means for tax, finance, procurement, and accounting teams.
We'll examine how the new rules apply to SaaS and software purchases, common areas of risk, potential financial consequences of non-compliance, and the steps organizations can take now to prepare for the January 2027 effective date.
Whether your business is evaluating a handful of SaaS subscriptions or managing software purchases across multiple departments, understanding these changes now can help reduce compliance risk, improve audit readiness, and avoid unexpected tax liabilities in the future.
Attendees Will Learn
• How California SB 122 changes the tax treatment of SaaS and downloaded software
• When and why buyers may be responsible for reporting and remitting use tax
• Why a vendor invoice without tax does not necessarily eliminate tax obligations
• The potential impact of underreported software taxes, including tax, interest, and penalties
• Practical steps tax, finance, procurement, and accounting teams can take to prepare before January 1, 2027
Speakers:
Ray Vizza
Principal, State and Local Tax | Indirect Tax Technology
KPMG
Larry Mellon
Tax Director, Chief Tax Office
Vertex, Inc.
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