What is Sales Tax on Digital Products?

Sales tax on digital products refers to the indirect taxes that governments impose on downloads, courses, memberships, and other digital goods. Rules vary widely by country and even state: some regions tax streaming subscriptions or ebooks, while others exempt educational materials. Creators selling internationally must determine nexus, register for the appropriate programs, collect the correct rate at checkout, and remit returns on schedule. Many platforms provide tax automation or act as the merchant of record to simplify compliance.

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