States Offer Tax Guidance on Digital Keys for Software, Gaming

May 19, 2025, 10:03 PM UTC

A plan to improve state sales tax administration for digital keys used to access software, online games, subscriptions, and other products and services advanced Monday during a meeting of tax administrators.

A separate proposal that would minimize opportunities for double taxation of products sold through home-delivery services like Instacart, GrubHub and DoorDash was defeated during the same meeting.

The Streamlined Sales Tax Governing Board’s state and local advisory council gave preliminary approval to a proposal aimed at the tax treatment of digital authorization codes, a rapidly emerging e-commerce model for digital products and services. Final action on the proposal could ...

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