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Electronically Delivered Products Subject to Maine Sales Tax

  • Feb 21, 2014 | Gail Cole

 Send a design in PDF form to a client in Maine? It may be subject to sales tax.

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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photo credit: photosteve101 via photopin cc

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.