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 destination address of the sale and the digital goods Taxability Information Code (TIC) used. There are some state variations, meaning that our sales tax engine will know whether to add sales tax to the product or service or based on these these inputs.

• TaxCloud calculates sales tax based on the information provided. If there is information missing (such as the +4 zip extension), 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.