Digital products are products provided to a customer electronically. Usually, a customer is given access to the product through the Internet or email.
Taxable digital products include:
- Digital audio works (music, audio books, ring tones)
- Digital audiovisual works (movies, music videos)
- Digital books
- Digital codes that give a purchaser access to taxable digital products
- E-Greeting cards
- Online video or computer gaming
Nontaxable digital products include:
- Access to digital news articles
- Charts and graphs
- Data or financial reports
- Digital photos and drawings
For more information, see Digital Products.