Electronically Delivered Products Subject to Maine Sales Tax
- Feb 21, 2014 | Gail Cole
Update, 5.5.14: H.P. 1323, signed into law without the governor's signature as Chapter 588, corrects errors and inconsistencies in the Laws of Maine. Section E-11 clarifies that a tax is imposed on "products transferred electronically." The rate of tax for products transferred electronically is 5.5% from October 1, 2013 to June 30, 2015.
Maine Revenue Services has updated a sales and use tax bulletin regarding advertising agencies and graphic designers. It now clarifies that Maine sales tax applies to the electronic transfer of taxable products as well as to the transfer of tangible personal property.
Previously, sales tax was known to apply to the transfer of hard copies of designs, photographs, layouts, and printed material such as catalogs and brochures. Sales of audio and video tapes—tangible goods--are also subject to sales tax.
The updated bulletin makes clear that electronically or digitally transferred goods are also subject to Maine sales tax. For example, a design converted to PDF format and then emailed to a client.
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