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BartEsq
BartEsq, Researcher
Category: Business Law
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Experience:  Juris Doctor
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An e-book can be sold and distributed on the Internet via PDF

Resolved Question:

An e-book can be sold and distributed on the Internet via PDF download, Amazon Kindle download, Apple iPad download, etc., etc.

Are these sales taxable and must sales tax be paid on the revenue generated from downloadable e-books, because they are not tangible.

How is the sales tax rate calculated for e-books downloaded by customers in other states and other countries?

Context: I am in Dallas, Texas and setting up a online business.
Submitted: 5 years ago.
Category: Business Law
Expert:  BartEsq replied 5 years ago.

bart0358 :

hello, I'm researching your answer now.

bart0358 :

E-books are considered a tangible item. An intangible item would be something that is a service like a massage.

bart0358 :

Regardless, how the sales tax is calculated for downloaded books by customers will depend on how you organize your business and how you sell the product. Specifically where are you advertising in which jurisdiction are you reaching out to.

bart0358 :

In order to organize your business properly and predetermined how taxes will be provided for during the course of your business you should consult with a lawyer they can set up your business for you and is willing to go to bat for you and represent you based on his legal advice for you want to do business. I am a Florida lawyer and set up small businesses for a living. If you're going to be doing business in Texas, I recommend you get a local attorney to consult with regular. And an account.

bart0358 :

so until you actually start making money, it's hard to determine how taxes will be handled but my advice to you is sell sell sell.

bart0358 :

You can take care of the taxes on the backend get your business off the ground.

bart0358 :

Hope this helps, please remember to accept if this answer was useful.

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