California – Digital products are tax exempt in California. The “sale of electronic data products such as software, data, digital books (eBooks), mobile applications and digital images is generally not taxable” (though if you provide some sort of physical copy or physical storage medium then the sale is taxable.)
What is excluded from California sales tax?
Some items are exempt from sales and use tax, including: Sales of certain food products for human consumption (many groceries) Sales to the U.S. Government. Sales of prescription medicine and certain medical devices.
Do you pay sales tax on out of state purchases in California?
Use tax applies to out-of-state purchases made by: And both of the following apply: The seller does not collect California sales or use tax. You use, give away, store, or consume the item in this state. Use tax does not apply if you paid sales tax. Items that are exempt from sales tax are also exempt from use tax. (CDTFA) for more information.
What does the use tax do in California?
The use tax generally applies to the storage, use, or other consumption in California of goods purchased from retailers in transactions not subject to the sales tax.
What makes an item exempt from use tax in California?
If you traveled to a foreign country and brought items back to California, the first $800 is exempt from use tax if both of the following apply: It was purchased by an individual from a retailer. It was personally hand-carried into California from the foreign country within any 30-day period.
How to report California consumer use tax account?
If you hold a California consumer use tax account, you are required to report purchases subject to use tax directly to us and may not report the tax on your income tax return. If you have questions or would like additional information, you may call our Customer Service Center at 1-800-400-7115, or your local CDTFA office.
