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When is a computer not a computer? This isn’t a riddle- to figure out taxability of an item, you need to see how it’s defined. But it’s not that simple- states and localities can have wildly different definitions from each other. For example, take a look at the way the Streamlined Sales and Use Tax Agreement defines some important terms: “Computer” is an electronic device that accepts information in digital or similar form and manipulates it for a result based on a sequence of instructions. “Computer software” is a set of coded instructions designed to cause a “computer” or automatic data processing equipment to perform a task. “Delivered electronically” means delivered to the purchaser by means other than tangible storage media. “Digital Audio Works” is a work that results from the fixation of a series of musical, spoken, or other sounds, including ringtones. “Digital Books” means works that are generally recognized in the ordinary and usual sense as “books.” These are just a couple of definitions from the Streamlined Sales Tax Project. States outside of Streamlined Sales Tax can (and do!) come up with their own definitions of product types for sales tax. If these definitions seem granular or frustrating, you’re not alone. But specificity from the states can allow for clarity and a more efficient sales tax process. These complicated definitions aren’t your enemy, but an opportunity for peace of mind in ensuring sales tax compliance. What’s the craziest sales tax definition you’ve come across? These definitions are everywhere for sales tax professionals. Nailing them down can mean standing out at your job. Find out more on the definitions of digital products here: https://lnkd.in/gcdd3RWC #salestax #digital Carolynn Kranz

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