SALT Report 3226 – The Minnesota Department of Revenue has revised the fact sheet on digital products to reflect the changing transactional nature of sales and use tax. The document provides current examples of taxable and exempt downloaded products including guidance for resale and multiple points of use (MPU) exemptions. Digital products, according to the Fact Sheet, “can be any product that is transferred electronically to a customer.”
“Transferred electronically means the purchaser accesses or obtains the product in a way other than tangible storage media (such as a USB drive or DVD disk)”. It should be noted that computer software is always considered a physical good according to the state of Minnesota regardless of method of transfer.
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