To keep up with the digital age, over half of the states across the U.S. have implemented sales and use tax laws and regulations related to digital goods, and there are undoubtedly more to come. It is important to stay informed of these changes and to comply with any updates that may affect your business.
Pre-Wayfair, the sale of digital goods was not subject to sales tax, but now, many states require that sales tax be collected on all digital goods sold within their borders. This includes digital audiovisual works, digital audio works, and digital books, to name a few, as well as digital goods sold through a marketplace such as Amazon or Etsy.
These changes vary by state, so it is important to check the specific laws and regulations for any state where you are selling digital goods. As always, it is best to consult with a tax professional if you have questions or concerns about how these changes may affect you or your business.
Thompson Tax is here to help. Please reach out to us today with any questions you may have. We are your Trusted Tax Advisors.