- Louisiana passed House Bill 8, effective January 1, 2025, applying sales tax to digital goods
- Taxable digital goods include digital audiovisual and audio works, digital books, games, periodicals, and remotely accessed software known as SaaS
- Digital codes used to access or obtain digital products are also taxable, except for gift cards or certificates redeemable for non-digital products
- The bill defines a sale as the first act in Louisiana when a consumer views, accesses, downloads, or enjoys the product
- Exemptions are available for digital products used exclusively for commercial purposes, directly in the production of goods or services for sale, and for items created solely for the creator’s business needs
- Additional exemptions for digital products used by FDIC insured financial institutions and licensed healthcare facilities for specific business purposes
- The definition of use mirrors that of sale, focusing on the consumer’s first interaction with the product
- Retailers must tax digital goods correctly starting 2025 or collect appropriate exemption certificates
- Businesses using digital goods must prepare exemption certificates for exempt items
Source: salestaxinstitute.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.
