Beginning July 26, 2009, digital products will be subject to Washington State sales tax. Previously, only downloaded digital products were subject to sales tax. New legislation redefines digital products and expands the range of digital products and online services that are taxable.
Digital products subject to sales tax now include:
- Downloadable digital goods, such as music, movies, and other information
- Digital access codes that allow the buyer to download or access digital information
- Online services
Digital products and services are not taxable if they are
- Provided for free
- Performed mainly by a human
- Will be resold or repackaged by the buyer into another business product
Digital products and online services are also subject to B&O tax of 0.471% for retail.
For more information, visit http://dor.wa.gov/digitalproducts
