KPMG article: State and local tax approaches to the definition of a “platform”

Application of state and local sales or other indirect taxes to a platform or the service provided by that platform

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July 14, 2025

The word “platform” can mean many things, including uses as a “computer or hardware device and/or associated operating system, or a virtual environment, on which software can be installed or run” and “an application or website that serves as a base from which a service is provided.” Those definitions seem simple and straightforward. However, the application of state and local sales or other indirect taxes to a platform, or the service provided by that platform, can be as varied as the meaning of the word “platform” itself.

Read a June 2025 article* prepared by KPMG LLP tax professionals that explores the complexities and nuances of determining the correct tax classification for platforms, emphasizing the importance of thorough analysis and ongoing review to comply with evolving tax regulations across different jurisdictions.

* This article originally appeared in The Tax Adviser and is provided with permission.

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