Indiana – Online Social Network Games Are Not Taxable

SALT Report 1268 – The Indiana Department of Revenue ruled that sales of access to online social network games are not subject to Indiana sales and use tax under section 333 of the Streamlined Sales and Use Tax Agreement which states that, “A member state shall not include any product transferred electronically in its definition of tangible personal property.”

Online games are products that are transferred electronically but do not meet the current definition of tangible personal property which includes, “specified digital products, ancillary services, pre-written computer software, or telecommunication services.”  Therefore, sales to end-user customers of digital goods for use in, or, for online social games, when accessed through the Internet, are not subject to Indiana sales and use tax.
For Further Information: