Calculating sales tax on Digital Goods
How does TaxCloud calculate sales tax on digital goods?
When there is a digital product that’s downloaded instead of shipped, TaxCloud will calculate based on the billing address and the digital goods Taxability Information Code (TIC) used, with some state variations.
- TaxCloud calculates sales tax based on the information provided. If there is information missing (such as it could result in an incorrect calculation. Review the Taxability Information Codes (TIC) available to ensure you’re using the applicable one for your item.