- Rhode Island and Tennessee impose sales tax on online educational courses accessed via the internet.
- Many states tax digital products and remotely accessed software, which can unintentionally subject online classes to sales tax.
- Legislators may need to reconsider treating digital purchases of movies, books, and music the same as educational courses.
- Some states have exemptions for certain online courses based on format and level of interaction with instructors.
- Sellers of online courses need to carefully analyze taxability determinations based on state laws and exemptions.
- Factors to consider include the state’s taxation of digital products and SaaS solutions, exemptions for educational services, course format, bundled transactions, and the impact of a single price for a library of courses.
- States will continue to broaden their sales tax base for electronically delivered products and services, potentially subjecting more online classes to sales tax.
Source: aprio.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
