Tax & Accounting Blog

Indiana Issues Directive on Electronically Transferred Products

Indirect Tax, ONESOURCE, Sales and Use Tax, Transaction Tax September 7, 2011

The Indiana Department of Revenue has issued Directive No. 41, 09/01/2011 concerning the taxability of products transferred electronically. In order to be in compliance with the SSUTA, effective September 1, 2011, the Department may impose sales and use tax on products transferred electronically only if the products meet the definition of specified digital products, ancillary services, prewritten computer software, or telecommunication services. Prior to the publication of this directive, the DOR imposed sales and use tax on products transferred electronically based on whether or not the products were taxable in their tangible form. The directive does not apply retroactively.

The Directive is available on the Indiana Department of Revenue Website at: http://www.in.gov/dor/reference/files/cd41.pdf