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Online taxes for digital downloads

Discussion in 'General Business' started by Gusto10, Jul 4, 2022.

  1. #1
    Hi Everyone,
    Quick question about online taxes.. How do taxes work with digital downloads? I'm in NY and I was looking to purchase someone's website that sells all digital downloaded products only but sells the globally.. Just wondering how does collecting sales tax and VAT work? I've been searching online and was looking for some input on how others handle it. My reading seems like certain states collect taxes and some don't for digital products, do I have to check each state or do I just collect from NY residents? I'm going to of course speak with my accountant who's kind of old school so I might have to do a fair amount of the research or reach out to an account that specializes in online taxes and I just wanted to see how others handle it.. Thanks
    SEMrush
     
    Gusto10, Jul 4, 2022 IP
    SEMrush
  2. sarahk

    sarahk iTamer Staff

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    #2
    I'd be talking to your accountant about this. They're going to be up on your local laws etc and their advice will stand up in court if anything ever goes wrong.
     
    sarahk, Jul 4, 2022 IP
  3. GokuDBZ

    GokuDBZ Well-Known Member

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    #3
    Approaching a local accountant would be the best for you. As far as I know only 28 states tax on digital goods.
     
    GokuDBZ, Jul 4, 2022 IP
  4. jrbiz

    jrbiz Acclaimed Member

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    #4
    jrbiz, Jul 5, 2022 IP
  5. Gusto10

    Gusto10 Peon

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    #5
    Thank you Everyone! I reached out to a local account and waiting to hear back from them!!

    Thank you this link really helped.
     
    Gusto10, Jul 7, 2022 IP