Wisconsin Form - Multimedia Product Publication Agreement
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FAQ
California. No, they do not generally require a sales tax on digital products/downloads that do not have a physical storage medium.
A designer's fee is not taxable if the fee is solely for services rendered and there is no sale of tangible personal property or items, property, or goods under s. 77.52 (1) (b), (c), or (d), Stats., involved with the transaction.
There are 23 states that do not tax digital products. 4 states do not have a retail sales tax at all; these include: Delaware, Montana, New Hampshire and Oregon. For the states that tax digital products, the tax rate varies from 1% to 7%, depending upon the state and the type of digital good.
The sale, lease, or license of computer software, except custom computer software, in Wisconsin is subject to Wisconsin sales or use tax unless an exemption applies, regardless of how it is delivered to the customer (diskette vs. electronically).
Not every sale of a digital good (i.e., a product transferred electronically) is subject to the sales tax imposed by sec. 77.52(1)(d), Wis. Stats. A sale may not be taxable even though a digital good is transferred to the customer.
On November 30, 2021, the Wisconsin Department of Revenue (?Department?) updated Publication No. 240, which provides guidance on the application of Wisconsin sales and use tax to sales and purchases of digital goods.
Not every sale of a digital good (i.e., a product transferred electronically) is subject to the sales tax imposed by sec. 77.52(1)(d), Wis. Stats. A sale may not be taxable even though a digital good is transferred to the customer.
Sales of advertising and promotional direct mail sourced to Wisconsin are exempt from Wisconsin sales and use taxes. However, sales of advertising and promotional direct mail sourced to another state may be subject to that other state's sales or use tax.
