Service providers and content creators, this is for you.
If you've been wondering about whether or not to charge sales tax with digital courses, look no further. We are here to clear the air!
Now when we say digital course, we specifically mean memberships, courses, programs, or digital downloads. AKA anything where your customer or client is receiving non-tangible, digital goods.
Now, there is not a straight answer on whether or not you should charge sales tax with your online product. Each state has different sales tax laws (including some that exclude them entirely). You'll have to do some research on your specific state (or the state in which your business does business) to find out whether or not sales tax is necessary for you. Better yet, ask your CPA to do the dirty work and find out for you!
Quick tip: you can call your state's department of revenue to be sure you are hearing the information from a reliable source.
Now tell me, does your state require you charge sales tax on your digital products or courses?
Emily Mattox, CFE, CPA
Owner at Mattox Accounting LLC Dracut, MA