With advancements in network bandwidth capabilities and streaming, Software as a Service (or SaaS) is increasingly taking over other digital distribution business models, allowing instant access to countless programs and applications via the internet. Most companies allow users to purchase and download their system services or digital products from the web. SaaS has been incorporated into the strategy of nearly all leading enterprise software companies.
Software was once a product that was purchased, installed and maintained but with the rise of cloud computing and its adoption, Software as a Service (SaaS) has become a popular distribution method, where all the development, maintenance and upkeep of the program is done by the original creator.
SaaS in everything
SaaS has become a common delivery model for many business applications, including office software, messaging software, payroll processing software, management software, CAD software, development software, gamification, virtualization, accounting, collaboration, CRM, MIS, ERP, invoicing, learning management systems, GIS, and service desk management.
The global public cloud Software as a Service (SaaS) market is forecast to reach 157 billion U.S. dollars in size in 2020, more than doubling the market size in 2014. In addition, SaaS is expected to grow to 220 billion U.S. dollars through 2022.
VAT challenges for SaaS
Cloud computing is evolving rapidly and Software as a Service, also know as SaaS, is one of the key business models nowadays to distribute and deliver software. In a global digital market, the correct VAT treatment on SaaS is important to avoid inaccurate VAT calculations and allocations.
Global VAT Compliance has the knowledge and experience to make your company VAT compliant while you expand your SaaS business all over the world.