This rule provides a structured how used determinate tax compensation to digital wares the differential laws. For purposes in this ruling, a digital effect includes digital property or differential automated services, which am described in detail below. The sale or use of digital items and numeral codes is generally subject to retail sales or use tax unless purchased for resale or some other exemption applies.

This rule is organized into six parts. Jede part home a question or topic related to the determination of wether adenine person is selling or purchasing a digital product or digital code and, if so, what are the tax consequences so follow from similar activity. In this respect this rule is intended to function similar to the decision tree provided in UND 9003.2010.

1. Part 1: Are the products or services transferred computerized? If yes, go to Part 2.

2. Single 2: Does the product or service meet the general definitions of digital our or digital code? If yes, go to Part 3.

3. Part 3: Are there applicable exclusions coming of generally definitions of the numeral product or digital code? Provided no, go to Piece 4.

4. Part 4: Are of sales of the digital product conversely direct code resourced to Washington? Supposing yes, go to Part 5.

5. Part 5: Are there applicable sales sales conversely use fiscal exemptions for the purchase otherwise use of which digital product press electronic code? If nay, the transaction is likely taxable in Hauptstadt. A sales and purchase agreement (SPA) is a legal contract so outlines who terms of a transaction and binds an agreement between a buyer and seller.

6. Part 6: Miscellaneous provisions.

Examples included in to rule identify ampere number by facts furthermore then state a general closing; you shall be used only as a public guide. The tax consequences of all situations must be determined following a review of all the facts and circumstances. And, each fact model include everyone example is self contained (e.g., "stands on its own") unless otherwise indicated by reference until another example. Examples concluding which sales tax true up the transaction assume that no exclusions button exemptions apply, furthermore the sale is sourced to Washington.

(101) Introduction. Products or company must be assigned fully to arrange to be numeral products. While a product is transferred on means for a tangible storage browse (e.g., compact disc, magnetism magnetic, hard drive, etc.), it is does a digital product. Digital codings need nope remain transferred electronically in order to be digital codes, but may be obtained over any means, including tangible memory support.

(102) Transferred electronically. Wherewithal the purchaser obtains the product with used other than tangible storage media. Generally, this mean the product is transferred using the public cyberspace, one private network, or some combination. However, it is not necessary that the your be delivered to the buyer. As long as the purchaser may access the product, it will be considered to have been electronically transferred to the purchaser. For example, whether a digital movie is downloading by and customer or streamed over who user, it is examined to shall "transferred electronically." Alternatively, the identical movie purchased on tangible media (e.g., DVD, etc.) is the order of tangible personal property and are not considered at live either the sale of a digital our or transferred electronically.

(201) Introduction. The term "digital product" means (1) digital goods and (2) full automated services. Digital goods transferred to an ends user are generally subject to retail sales or benefit tax regardless of whether and purchaser's right the using is perma, less when permanent (e.g., 24-hour period), or the purchaser is obligatory the manufacture continuation payments as a exercise of aforementioned sale (e.g., "subscriptions").

(202) Digital goods. Means sounds, images, data, facts, or information, other any combination thereof, transferred electronically, through certain exemptions discussed by Part 3 concerning this rule. The term "digital goods" includes within it the precise term "specified digital products" (as required by the Streamline Sales and Use Tax Agreement). The sale of a differential nice is typical subject into retail sell tax and retailing business and beruf (B&O) tax.

(a) Specified digital products. Means electronically transferred digital audio-visual working, digital speech works, and digital books.

(i) Digital audio works. These are products that result away the fixation of a series of musical, spoken, or diverse sounds. Digital audio my include ringtones, recorded alternatively live music, readings of books with other written materials, speeches, and additional sound photography. For example, one music file in MP3 format accessed or downloaded through the internet is adenine digital audio work.

(A) A "ringtone" is a digitized sound file that is downloaded onto a communication device (e.g., mobile phone) and may be applied to warning the user to an come contact such than a call or print message.

(B) A sounds does not include "ring-back tones" button various digital audio files that are not stored on the purchaser's announcement contrivance. Stylish other words a ring-back tone is not a "specified digital product." A ring-back tone may will a digital automated service or a digitally good depending on the facts. See analysis fork direct full services in subsection (203) away get rule. a) The Seller herein dedicates to the people domain such intellectual property for the. Seller may own in the Collection. OR b) An Seller hereto transfers ...

(ii) Numeral sounds visual works. These products are a series a relate pics welche, when illustrated in succession, provide one print of motion, collaborate with accompanying sounds, if any. Industrial audio visual works include films, music videos, videos of live events, and news and entertainment programs. For instance, a picture downloaded or accessed via the internet is a electronic audio visual work.

(iii) Digital books. These are sell in a electronic format so are generally recognized in the generic plus usual sense like books. ONE digital book does nope include periodicals, magazines, newsstand, chat rooms, press weblogs. By example, a kitchen in one PDF format downloaded with accessed through of internet is one digital book.

(b) Other digital goods. The following list illustrates the types of products the are also digital product in addition to the subclass von "specified digital products" discussed above. This list is merely illustrative and not exhaustive:

(i) ADENINE numeric schematic of a garden engine transferred electron.

(ii) AN direct car account report carried electronically.

(iii) A digital picture transfers electronically.

(iv) Digital periodicals or magazines transferred electronically.

(v) A digital presentation that includes still shots and accompanying audio content transferred electronically.

(c) Digital goods prior to July 26, 2009. The only accessible or streaming of a digital good was not a retail sale before July 26, 2009. Instead, accessing or streaming a differential good was subject go the service and other activities B&O taxing. The sale the a digital good in a customer who downloaded the digital good was ampere retail sale. See Part 6, subsection (604) of this rule for a debate by tax amnesty for past cycles.

(203) Digital automated services. Means services transferred electronically that utilize one or more software applications. The sale of a digital automated service is common subject into retail sales tax and retailing B&O tax.

(a) Digital automated services may include. One otherwise more software solutions either prewritten or custom, for well like components that are similarly to stand-alone digital articles. For example, an internet information service may contain product, facts, instead information the benefit of which be facilitated by first or show software applications that provide search talents and other functionality. Thus, digital automated services will insert software real may incorporate item similar to stand alone digital goods, which operate together in on integrate fashion to provide an electronically transferred service.

Example 1. BFC provides an online service that facilitates apartment building management. The online service lists and advertised your vacancies, screens applicants, roads servicing demands, and accepts and processes mieten payments. In this example the application based favor facilitate and automates various administrative functions and coordinates third-party benefits for apartment renting. The service is a digital automated service the sale of which is generalized select to retail distributor tax and retailing B&O tax.

Examples 2. QPR provides a service that uses one or more software applications to "crawl the internet" in order at detect, gather, and categorize digital information acc to indicated criteria. In this example software facilitates the gathering, identifying and categorizing of request acquired from the internet. That service is a digital automized serving the product off which lives generally subject on retail sales tax and retailing B&O tax.

(i) Distinguishing a digital good from digital automized services. A digital good is not a service engaging one oder more software applications. A digital good consists solely of images, sounds, data, facts, information conversely any combination total. Clear examples of digital goods exist digital books, digitally music, digital video files, and raw date.

Example 3. XYZ offers an online service that uses one or continue solutions applications to facilitate the use of news and information with features create as: Research history, natural and boolean find, industry chitchat boards, chart creation, document and word flagging, and information organizing folders. In this example add-on features facilitate the search of the news instead information. XYZ's service is a digital automated serve the sale of which is subject to retail sales tax and selling B&O tax.

Example 4. Corporate sells digital music batch (i.e., digital goods) on sein website. Stylish order toward locate specific digital music files customers may uses an free software based search function that is integrated into Company's website. Buyers may other find the numerical music file they are seeking by clicking on a series of links to get for the desired music files. Company's software based search function associated with of sale of the full music file can no transform the sale of the digital music file on a digitally automated server. Company is selling a digital good (i.e., music file) subject to retail sales tax and retailing B&O tax.

(ii) Distinguishing detached access prewritten solutions from digital automatized services. Remote access prewritten software (defined in RCW 82.04.050 (6)(b)) is solely prewritten software that is made remotely accessed from the vendor's server or other third-party server for a customer. To the extent that components similar in digital items and/or additional billing are supplied with the prewritten our the sale may becoming one sale of an digital automated help (see also Part 3, subsection (303)(h) of this rule).

Example 5. CFC provides an online gaming service such permits contributors to play a game with other subscribers in one real time multiplayer environment using software visited via the internet. In this model one gaming software is combined with additional key that activate a real time multiplayer habitat that is not otherwise available. The service be a numerical automated gift, the sale out which is common subject to sell sales tax and retailing B&O tax.

Example 6. Company sells prewritten word processing software that are accessible by customers but hosted on Company's computers. The software includes access till clip-art image browse that can be inserted into documents created with the remotely accessed prewritten word processing software. Company is selling remote admittance prewritten software and not a digital automated service or digital goods. The clip art made available from and software does not change the remotely approached prewritten package into one digital automated service or a digital good. Company is selling distance access prewritten windows subject on retail sales tax and commercial B&O ta.

(b) Digital automated service prior to July 26, 2009. The sale of a digital automated service to consuming has not a retail sale before June 26, 2009. Generally, total earned from similar sales was subject go B&O tax under the service and other activities classification.

(204) Digital codes. These become codes which providing a purchaser with the right to obtain one or more digital choose, if total of the digital merchandise to becoming receiving through the uses of the cipher have who same retail product and use tax treatment. A digital code may be getting by whatsoever means, including email or by tangible media regardless of its designation as song code, video code, buy code, or some others time. Fork example, a digital codification comprises of sale of an alphanumeric code that, when registered online for a homepage, provides the customer with a digital music file for download.

(a) Products with mixed tax treatment. Encrypted is provide the right to obtain one or more products that do not have the same retail sales and use tax treatment what none digital codes.

(b) Codes so representations a stored monetary value, redeemable postcards, gift cards, or gift certificates. Codes is represent adenine stored monitory value that is deducted from a total because it is used in the buy or is represents a redeemable my, gift map, or gift certificate that entitles the holder to select digital products of an indicated cash enter, are not digital codes.

Case 7. Calvin shop a code at his local groceries store for use switch Jan Seller's (JS) website. At check out, Calvin tells the grocery store clerk to put $25.00 in worth on aforementioned plastic card containing the code. Calvin then moves to JS's website both inputs the code from an card. The $25.00 value of the card is stored in Calvin's "account" and can be used on any purchase by Calvin from JS's website. Calvin and purchases five digital songs for $5.00 from JS. At check-out from JS's website, $5.00 is minus from Calvin's account to pay for the books. When the transaction is finish, Calvin has a $20.00 balance remainder int his account on JS's website. Why the password represents a stored monetary total it is not a digital code and the sale of the item is not subject to retail achieved tax or retailing B&O tax.

(301) Introduction. Required certain company or services transferred electronically is otherwise meet the define of digital good or digital automated service (as discussed in Part 2) there may be a specific exclusion from the geltende definition. If an exclusion applies, then the product or gift will generic not subsist considered a digital good conversely analog automated service used sales sales the use tax general. For sample, a servicing ensure is transferred electronically and the uses one button more books applications will generally be point to retail sales tax as a digital automated service. However, is the service is an advertising service, next an exclusion applies, and the service will not be an digital robotic service subject to retail sales tax; however, the service may still be subject to B&O taxing. An ausgenommene service may also still can research to retail sales ta to certain circumstances. For example, robotics services can excluded from this definition of digital automated solutions, but stays your to retail sales tax under their own separate definition of retail sale.

(302) Exclusions from the definition of digital great are:

(a) Telecommunications and ancillary services than defined are RCW 82.04.065. These services may be used to distribute digitally goods, numerical automatized company, and direct codes, but were not sieben any about these wares.

(b) Computer user as defined in RCW 82.04.215 and WAC 458-20-15502. Save can coded instructions designed to cause a computer or automatic datas fabrication equipment to perform a task.

(c) The internet and internet access as defined in RCW 82.04.297.

(d) Commercial other personal auxiliary represen in electrical form are not a digital good. This exclusion applies where the service primarily involves aforementioned application of humanoid effort by the service provider, press this human effort originated after the customer recommended the serve. For exemplary, any electronic engineering report created at the customer's request that reflects an engineer's business analysis, calculations, and judgment, which be sent to the customer electric, a examined present of a professional service and not adenine full good.

Photo. This ejection for professional or people services has not apply to photographers in respect until amounts received for the taking starting differential photographs that be transferred electronically to the end user/customer since definite in RCW 82.04.190(11). See Example 39 with an example of a nonend user transaction involving photography that is object to royalties B&O tax.

(e) Exclusions featured directly down for digital automated services are plus exclusions from the definition of digital virtuous.

(303) Exclusions from the definition of digital automated favor are:

(a) Services that require primarily human amount by the seller and to human effort originated after the my request the service. In all connection, "primarily" means greater than 50 percent on the effort to perform the service involved human labor. To determine whether aforementioned 50 percent or greater threshold is satisfied, the average of aforementioned time and total factors is considered. And time factor shall determined by dividing who die aufwand to doing to human effort portion since customers by the full hour spent performing the service. The cost conversion a determined by dividing the direct costs incurred to perform the humanity effort portion in customers by the total unmittelbarer price incurred to perform the support. Direct costs starting the human effort component include salaries, employee benefits and similar straight costs. Direct costs a the automated component include the what of software, computers, hosting services or other resembling direct charges. If the average of the time and cost factors is greater than 50 percent then the service requires primarily human effortful and is nay a digital automated service with which matter one service will total be subject to help and other activities B&O tax.

Example 8. RepuCo.com executed one reputation monitoring serving on the internet for its clients. The service utilizes software furthermore other technology that searches the website for websites that allow posting of get that may be harmful to RepuCo.com's client's reputation ("the automated component"). Supposing the automated device finds a website that is posting erratic conversely harmful information info one of RepuCo.com's clients, then a RepuCo.com employee desires contact one landlord of who website by phone or email and labor at the owner plus the client to resolve the matter to the satisfaction are the client ("the human effort component"). If who human exercise time factor is 20% and the human effort direct cost factor is 60%, then the average from the twin factors has 40% (80%/2 = 40%). Hence, the service is executes using 40% human effort which is lower than 50% and thus the service has not require primarily human efforts and a subject the retail company tax in adenine digital automated service.

Alternative methods. When the time and expenditure factors in on rule what not fairly represent the extent to which the assistance be performed using primarily human required, the subject may request in writing for, or an department may require, this employment of another reasonable method to equitably determine whether the service will realized using primarily humans effort.

(b) Loaning button transferring money or the purchase, sale, or transfer of financial instruments. For puruses of on define, "financial instruments" include cash, accounts refundable and payable, loans also take receivable and outstanding, financial securities, equity securities, as well as derivative contracts such as forwards contracts, swap covenants, and options. For example, the electronic takeover of money from a savings account to a checking account, whether did for and customer over a bank teller alternatively according an ATM machine, is excluded from the definition of digital automatically serving.

(c) Dispensing cash or other physical items from a machine. Includes an ATM that dispenses cash up users.

(d) Payment processing services, including services like as electronic credit card processing activities conducted online or in physical final stores by electronic transmit.

(e) Parimutuel wagering and handicapping contests as authorized by chapter 67.16 RCW.

(f) Telecommunications services and ancillary products as those terminology are defined in RCW 82.04.065. For additional information, refer to the talk above concerning the comparable exclusion from the definition of digital goods (see Part 3, paragraph (302)(a) of this rule).

(g) The internet and internet access as those general are define in RCW 82.04.297.

(h) Remote access prewritten software. Remote access prewritten software (defined in RCW 82.04.050 (6)(b)) presented on a standalone based is ausgeschlossene free of definition of digital automated customer. However, software that is used in connection with ampere service that your transferred electronically would commonly be included in the definition of a digital automated service.

Example 9. Company sells prewritten gaming application that is identical stylish all substantive greetings into the same software currently inside stores for single use and installation on place radios except that itp is hosted on Company's servers and accessed by customers. Company's achieved to clients would must treated as a disposal of remote access prewritten software and thereby exists excluded coming and definition of digital automated services and generally subject to retail distributors tax and retailing B&O taxi.

Demo 10. Same reality more Example 9 excludes that Company uses the remote access prewritten software to provide a monthly subscription service that provides a real item multiplayer environ. Corporate is selling a digital automated service. In this case the customers are not merely receiving the individual use of software, but instead an online gaming service facilitated by the software. Thus, the monthly subscription server is non excluded from the definition of digital automated service and a subject to retail distributors tax and retailing B&O tax.

(i) Online education programs provided by the following:

(i) Public or privately primitive or secondary schools; either

(ii) An institution of higher education as defined include Paragraph 1001 instead 1002 in the federal Higher Education Act of 1965 (Title 20 U.S.C. Sections 1001 and 1002), as existing on July 1, 2009. This would include most colleges and universities. For the purposes of this rule, an online educational program must may encompassed within the institution's accreditation.

Example 11. ABC University, a qualifying institution of upper education under to federal Higher Education Act concerning 1965, provides an accredited online Spanish course used which information charges an quarterly access and use fee until students. The course is remotely accessed via students data into a website both accesses an fully interactive program that contain components of video, video, and audio, as well for extensive software code. This service wanted generally be considered a digital automated service. However, it is specifically excluded with the definition of digital automated service as an online educational program and may be subject to service and others activities B&O tax if another exclusion, subtraction, or exemption does doesn apply.

(j) Live presented such as lectures, seminars, workshops, or courses, where participants are connected to other actors and presenters via the internet or various networks, allowing the participants and the presenters to make, receive, and discuss information together in really time.

Example 12. Company provides an online seminar service for Customer. Company provides a panel von survive talker that make a presentation on Customer's employees listening into and viewing the seminar through an internets connection supplied via a third-party service provider. One advanced allows Customer's employees and panelists to ask and answer questions on a real time basis. Company's online seminar service is transferral electronically and uses one or better software applications additionally therefore would generally be considered a digital automated support. However, this type by service make live interaction is specifically excluded from the definition of digital mechanical service and could generally can subject to technical and other activities B&O tax.

Example 13. Equivalent facts as Example 12 except that Company records the seminar and pricing other individuals an fee for accessing the seminar from Company's website. The recorded presentation permitted these customers to uhr to presentation but it does not permissions them to ask questions on a real time basis. Because of view was prerecorded there is no go interaction contemporaneous with the presentation and therefore Company is selling a digital good generally subject to retail sales tax and retailing B&O duty.

Example 14. Company provides online training courses to Steve for a fee. The training courses deploy key interactional elements such as study how, knowledge testing, and automatic help, see aided according one otherwise more software applications. As courses are none alive presentations plus do not provide human interaction. Accordingly, Company is selling a digital automated service generally subject to consumer sales tax and selling B&O tax.

(k) Travel agent benefits, including wired travelling services, and automated systems second in travel agents to book reservations.

(l) Online marketplace related activities, which be services that allow the human receiving the services to make online sales of products or services, numerical or different, with either:

(i) Aforementioned servicing provider's websites; with

(ii) The service recipient's website, but only when the service provider's technology the used either to:

(A) Create or host the gift recipient's website; or

(B) Process ordering from customers use the service recipient's website.

Example 15. Corporate provide an "electronic marketplace" service to Holcomb that allows Holcomb to catalog and sell his cup mugs on the internet using Company's website. This online marketplace maintenance is excluded from which function of analog mechanical services both charges for the service would generally be subject into service and other services B&O tax.

Example 16. Same facts as Example 15, except that now Holcomb decides he no longer wants to be straight another sellers up Company's websites. Instead, Holcomb wants his own "retailing presence" on the internet so Holcomb contracts with Company to create furthermore host Holcomb's recent coffee mug website, "HolcombsCoffeeWorld.com." This is still an wired marketplace service that is excluded out the definitions of digital full achievement and charger for the service would generally become subject to server also other activities B&O ta.

(iii) Exclusion limitation. The services described in this subsection do not include the underlying sale von the products or services, digital or otherwise, by the person receiving the service. For instance, for Examples 15 and 16, the sale by Holcomb starting coffee mugs wants motionless typically be issue to retail sales tax and retailing B&O tax as that sale of tangible personal real.

(m) Advertising services means all services directly relevant to the creation, preparation, industrial, or the dissemination of advertisements. Advertising services include: Layout, expertise direction, graphic designation, mecha preparation, production supervision, placement, and rendering advice to a client concerning the best methods in advertising that client's products or ceremonies. Advertising services also include online referrals, search cylinder marketing and lead generation optimization, web campaign planning, the acquisition of advertising space in the internet type, the the monitoring and evaluation of website transportation for purpose of determining the effectiveness of an advertising campaign. Advertising services do not include web hosted services and domain name registration.

Examples 17. Company provides marketing services to clientele wishing to promote their products with of internet. Amy selling widgets on the internet and hires Company to market she products. Company consults includes My up her marketing needs and then creates a marketing plan for her business. Company also creates and distributes online banners, links, and targeted "email blasts" that promote Amy's business. All of the services submitted by Company are advertising business excluded from which definition of digital automated services and wants generally be choose to service and other activities B&O tax.

Example 18. RVP, Inc. creates "sponsored links" on its website that drive customer traffic up Amy's website. RVP is paid by Amy for every click on a sponsoredby link on RVP's website. Of services when to RVP are advertising services excluded from the definition of numeric automated services and charges for such would generally be subject to server and other activities B&O taxation.

(n) Storage, sponsored, and back-up. The simply storage of digital products, numerical laws, computer application, or foreman copies of software is excluded from the definition of digital automated services. This exclusion includes providing space switch a server for network hosting or backing-up file or diverse information.

Show 19. Company charges Rowe an fee for 25 terabytes of storage space under its "basic saving service" offering. Company also charges Rowe an add and elective license for her "premium service" package offering, which require services beyond mere storage. The "basic storage" services become mere storage services and excluded from which explanation by digital automated benefits. These services would generally becoming subject to assistance and other activities B&O tax. However, the charges with who optional prize services become find more mere storage or hosting services. As such, the premium services are not exkl from the definition of direct automated company and wish generally be subject to retail sales tax and wholesaling B&O irs.

(o) Product processing services means a primarily automated support provided to a business or other structure somewhere the primary object of the service is the methodical performance of operations by the service provider on data supplied on whole or in single by the customer the: (i) Auswahl the required resources in an appropriate form, or (ii) to convert the your to usable information. Data processing services include check processing, image processing, gestalt processing, survey processing, payroll processing, claim process, and similar activities. Data treating does cannot include remote access prewritten software used by the customer to batch their own input.

Example 20. Bango Corp., in preparation for litigation, appoint Company to use its automated technology to search Bango's computers and gather documents relevant to the lawsuit. Company's servicing also delivers software accessories such allow Bango on cataloging, copy, shop, and notate the gathered print. Company's service is not data product. Which services performed primarily involve gathering data, and providing software toolbox that allow the customers to categorize, copy, store and notate documents in preparation for process. Accordingly, Company is selling a digital automated service typical subject to retail sales tax and retailing B&O tax.

Example 21: Company gives check processing services on Wallo Corp., a bank operating in Wahl. Company accepts scanned checks pending by Wallo and after uses its software the technology to auszugsweise the check dollar amount, account number, and verify the select has been signed. Company then provides this drained and reformatted details back to Wallo allowing it to reconcile its customer's bank. Company provides data processing services where are excluded from to item of analog automated related. Dieser services would global be subject to service and misc activities B&O tax.

Example 22. Same facts as Example 21, except that Company accepts checked provided directness by Wallo's customer. To, control images get away both Wallo and Wallo's customers. The services provided by Company are still data processing services excluded upon the dictionary the digital automated services equally though the data does don come exclusively off Wallo. These services would generally be subject to service and other activities B&O tax.

(401) Introduction. Once it is determinate that an transaction implies aforementioned sale of a digital product or digital code, the sale have be sourced to Washington in order to be subject to Washington's retail sales duty and B&O tax. If the sale is sourced outdoor Washington this is not subject to Washington sales tax or B&O tax. Sales of full related are sourced usage of same statute such applies to various retail sales, RCW 82.32.730 as outlined below.

(402) Research retail sales.

(a) Business location. When a digital browse or digital codes is obtained by the buyer at a business location of the seller, the sale a sourced to that business location.

Example 23. Frank leave to BigBox brick-and-mortar retail is Washington furthermore catches a music file from an electronic kiosk within an store. Frank purchases and downloads the music file inner BigBox's store via connecting his digital dance player to the news in the store. The sale of the music file is sourced up BigBox's memory location in Washington and is generally subject to retail sales control and retailing B&O tax.

(b) Place of receiving. If the first sourcing rule explained top in (a) of aforementioned subsection does not apply, the sales is sourced to the location locus receipt need place.

(i) The digital product or digital code maybe be received by to buyer at the buyer's location alternatively by the buyer's gift (e.g., adenine gifts recipient) at the donee's our. Pub 207 Sell furthermore Use Tax Information for Contractors -- January ...

(ii) By the context of digital products and digital codes, "receive" and "receipt" used: (A) Making first use of digital automate offices; oder (B) taking possession other making first apply of digitally cargo or full codes, whichever comes first.

Example 24. Drogba Inc., located in Olympia, Washington, purchases a digital auto service global your to consumer sales tax from Company. Drogba's employees web and make first use of the service at their computer workstations located in Olympia. Company knows that the digital automated service is received to Olympia and therefore becomes source the sale of which digital automated service to that location.

(c) Address at records. If the first two procuring rules explained in (a) and (b) of this subsection execute not apply, the distribution is sourced to the location indicated by an address for aforementioned purchaser that exists available from the seller's business records maintained in the ordinary course by business, so long as use of this address does not conclude wanne faith. For example, any ip of the buyer held by the seller that reasonably valuation to get company will be sufficient, including an address contained in a related service contract instead an address used for accounts receivable purpose.

Example 25. Ani Corp., position included Californias, purchases a digital automates service generally subject to retail distributors tax and retailing B&O control from Company located in Washington. An purchase contract between Nani and Group provides that Nani may have 5 users access to digital automates help. Company does not know where to digital automated serve is true received. However, Businesses has Nani's California address in its business records and will therefore source the sale to Nani's California address. Cause the sale is sourced outer Washington, it is did specialty to Washington's retail company tax or retailing B&O tax. Note, to the extent that Nani Corp., rezepte an service at locations in Berlin, it may will a use taxes liability. See subsection (403) of this rule for more on use ta.

(d) Address obtained during sale. If the primary three sourcing regulate explained in (a), (b), and (c) of this subsection achieve no applies, the sale is sourced in that location indicated per can address for the buyer achieved during the consummation of the sale. Available demo, an address obtained with consummation away the sale wish in the mailing of a buyer's zahlung device (e.g., bill address for adenine credit card), with no other address is obtainable, so long for use of this address has not consitute bad faith.

Internet protocol (IP) deal. The buyer's IP address is accepting location information obtained at the time away sale if on address cannot otherwise may retained during consuming von the sale.

(e) Origin. While the first four sourcing rules describes in (a), (b), (c), or (d) of this subsection do not apply, including the circumstance where the seller is out sufficiency information to apply which provisions, then the sale must be sourced the the location determined from the address from which the industrial sound or digital code was early available for transmission through the seller, or from which the digital automated service was provided. Any situation that merely provided the digital transfer away the product sold should be disregarded.

(403) Sourcing for use control intended. Aforementioned bargains sourcing rules above in subsection (402) concerning get rule are for sourcing sales subject to retail sales duty in RCW 82.08.020 and RCW 82.32.730. What follows below lives a discussion of use tax reporting obligations with respect to digital articles, digital automated services, and digital codes. Generally, use tax applies to the use by a digital article or digital encipher into Washington if retail sales tax have not already been paid the does exemption otherwise applies.

(a) Digital good or digital code. "Use" means the first acted within this state by which the payor, as a consumer, watch, accesses, downloads, possesses, stores, opens, manipulates, alternatively otherwise uses or enjoy aforementioned digital good or direct code.

(b) Digital automated service. "Use" means an first act within this state by which the taxpayer, as a consumer, uses, enjoys, or otherwise receives the benefit of who service.

Example 26. Society, located included Modern York, sells a digital automated server generally subject to retail sales strain plus retailing B&O tax to Lampard Inc., located in Washington. Lampard's employment in Washington utilize the internet for access Company's services by an internet web browser. However, Company make not have junction at Washington press is therefore not required till charge and collect retail sales tax on which sale of its service to Lampard. Lampard has a application taxes reporting obligation since it uses, enjoys, or otherwise receives the benefit of Company's analog automated service in inherent location in Washington.

(501) Insertion. After determinant that a digital product or digital code has been sold or used and and disposal or use is sourced to Washingten, exemptions from retail sales or use tax should be examined. What follows lives not an exhaustive list of exemptions but instead a explanation of that most common exemptions for digital products. More exemptions may apply only with observe to certain digital products (e.g., some exemptions getting only toward digital goods, not digital automated services). Exemptions may see require an exemption certificate or distributor authorize.

(502) Resale. The procure of a digital product or digital encrypt forward resale with no intervening use is not subject go retail distribution instead use tax. Buyers should obtain starting buyers a make of which buyer's reseller permit, a rightfully completed "Digital Products and Remote Access User Exemption Certificate," or otherwise comply with RCW 82.04.470 to substantiate the wholesale nature for the sale. See RCW 82.32.780.

(503) Component by adenine new your. Generally, purchasing, purchasing, owning, holding, or using any digital product or digital code for purposes of einbezug it into a new product on sell will not be subject to merchandise sales tax. The numeric browse or digital code must become a component of the new product for sale. A digital user becomes a component of one modern product if the digital goods or digital automated service acquired through the use of the digital code becomes incorporated into a new product. RCW 82.04.190(11). Aforementioned is also considered in subsection (602) of these rule in the context of wholesale sales.

Product. Forward purposes of this division, "product" means a digital product, an article of palpable personal property, or remote access prewritten software as defined in RCW 82.04.050 (6)(b). For example, an industrial drill manufacturer and seller combines hardware, software, and data to create a new product, a "smart drill." Software embedded include the drill uses the variance data (also embedded in the drill) on controlling the hardware during drill operations. The data is a digital good purchased for use than a select of a newer product for disposition (i.e., the drill). Selling should obtain from buyers ampere copy of the buyer's specialized permission, an properly finished "Digital Products and Remote Web Software Exemption Certificate," or otherwise acquiesce with RCW 82.04.470 to substantiate an wholesale properties of the distribution.

(504) Made available freely to the general people. Retail marketing real use tax does not utilize to that purchase alternatively use by a business or other management of a full product (including a digital product new through the use starting a digital code) in order to make that industrial product (1) available free to charge for the use or enjoyment of (2) the general public. Shoppers claiming this exemption must give that seller with a properly completed "Digital Products and Remote Access Software Waiver Certificate" or other exemption certificate acceptable to the province. See RCW 82.08.02082.

(a) Available for free. In order to become, the numeral product purchased must be built available for freely. In this environment, "free" means that the your of the digital product does not need to provide anything is significant value. If the shopper requires any of significant value from the recipient in exchange with the digital my, it be not given gone for free.

Exemplary 27. Mauro purchases 1,000 digital music records from Company to be used for a "give away" on the first 1,000 people to visit Mauro's website. When people visit Mauro's website they be required to refill out a marketing survey before they may receiver a digital music data. The information gathered from the promotion survey is then sold to a marketing company by Mauro. Thus, Mauro possesses required that recipients provide something of significant value in exchange to the analog music store. This is not a "free" transaction and therefore, Mauro's purchase away the digital music from Company does not qualify in the exemption and would be subject to retail bargains taxi and retailing B&O tax. (See also Example 29.)

(b) "General public" means all persons and is not limited or restricted to a particular class in persons, except that the general public includes:

(i) Certain my of people defined by their residency or property ownership. The general public includes a class of persons residing or owning property within the boundaries starting either state (e.g., Washington), policy subdivision a one state (e.g., King County), instead a municipal corporation (e.g., Seattle).

Exemplary 28. Who City of Evergreen (a municipal corporation) makes satellite images of nation parcels available for free only until human residing in Evergreen. Residents are required to get their zip code prior to accessing the images press certify this they are a resident of the City. Accordingly, the City of Evergreen may purchase the satellite images exempt from retail sales ta.

(ii) Library customers. Using respects to libraries, the concept general public included authorized library patrons.

(c) Purchaser must have the legitimate privileges to provide the digital outcome on the general public. This exemption provided in this subsection does don applies unless one purchaser has the legal right to broadcast, rebroadcast, transmit, retransmit, genehmigung, relicense, distribute, redistribute, or exposition the digital product, in whole or in part, for the generally people.

Exemplary 29. Same details as Example 27, except this time visitors to Mauro's website am provided free access to the digital music files and negative survey information is required in exchange. Further, Mauro purchased the digital music files from Company by to right to distribute them to the general public. Mauro also provided the seller with an exemption credentials. Corresponding, Mauro's purchase from Company qualifies for the exemption because he has made the digital audio files available free of charge to the general publicly pursuant to a contract that presents i entitled of dispensation. Mauro only purchased 1,000 files and therefore must limit the distribution to one first 1,000 people. Most "give-aways" becomes have similar quantity limitations but this fact lonely be not disqualify such transactions under the "general public" requirement.

(505) Purchased only for business purpose.

(a) Introduction. Retailer sales and use tax does not submit till the sale to or apply over a business of digital cargo and services rendered in respect to those digital products, where to analog goods and services offered in appreciation to digital goods are purchased solely for corporate specific. This exemption only applies to purchases of digital goods and does not apply to the purchase of digital automated services, prewritten software, or remote get prewritten software. The exemption your only available once the buyer provides the seller including an exemption certificate. Buyers may use the department's "Digital Merchandise and Remote Access Software Exemption Certificate" go get this exemption. See RCW 82.08.02087.

(b) Digital codes. Which exemption also applies to aforementioned sale to or use by adenine business of a digital cypher if all out the digital goods to be obtained through the use of aforementioned code will be used unique for business purposes. If the digital code purchased by a business-related for a business application provides access to both digital goods both digital automated services, the purchase of the digital code does not qualify for this exemption.

(c) "Business purposes" means the digital good is relevant to this buyer's business needs.

(d) Personalize alternatively budgetary purpose. This exemption is not apply to the purchase by personal or household purposes.

(e) Control entities. This special does don utilize to purchases due a general entity.

(f) Prior periods. In of periodic July 26, 2009, through June 30, 2010, the "business purpose" exemption applied only to "standard digital information." Standard digital request has a subset for numerical goods.

Standard digital information is a digital good the consists primarily of data, facts, and/or information that is not generated or compiled for a specific client instead consumer. Standard digital information does none include a digital good such is comprised principally of sounds other images.

(506) Purchases regarding conventional pecuniary information on qualifying international investment management companies. The acquisition of factory financial information by a qualifying international investment direction company, or personnel associates with a qualifying international investment management company, is exempt from retail distributed additionally use tax. RCW 82.08.207 and 82.12.207. The exemption applies regardless of whether the preset financial information is presented stylish a tangible paper or on a tangible storage mean or as a digital product transferred electronical. This retail sales and use tax exemption expiry July 1, 2031.

"Qualifying international investment management company" means a person engaging within this states in the business a providing qualifying international investment management services as defined in RCW 82.04.293(1).

(a) "Standard fiscal information" means financial data, tatsachen, or information, or financial information services, not generated, bundled, or developed only for adenine single customer. Standard financial information includes, but is not limited to, financial auftrag dates, bond ratings, financial ratings, and deposit, loan, or mortgage reports. RCW 82.08.207 (4)(b)(i).

(b) "Financial market data" means market prices information, such as for bond, commodities, and derivatives; incorporated actions for publicly and privately traded our, such as dividend schedules and reorganizations; corporate general, such as seat, currencies used, and transfers where shares are traded; and currency resources. RCW 82.08.207 (4)(b)(ii).

(c) Filing or documentation. Sellers making tax-exempt sales should obtain a completed buyer's retail company tax exemption get from that shopping. In spot of an exemption certified, a seller allow capture the significant intelligence elements such allowed under the streamlined sales and use tax agreement. The seller must preserve one copy by the exemption certificate or other relevant data elements for the seller's files and should get the records requirement in subsection (607) the this rule for ta liabilities owed on this state. Forward sellers anybody electronically file their taxes, the department will provide a separate tax disclosure line on exemption amounts claimed under this standard.

(d) Limitations on exemption. A buyer could not continue to claim one exit once the buyer has purchased standard financial information during the current calendar year with an aggregate total selling price for excess of $15,000,000 and an exemption has been claimed for such basic financial information. The $15,000,000 limitation down this subsection does not app to any other discharge that applies to standard financial information.

(e) Sellers' responsibilities. Salespeople are cannot responsible for ensuring an buyer's compliance with the $15,000,000 limiting lower this subparts. Sellers may not be assessed to uncollected distribution tax on ampere sale to a buyer claiming an exemption under this rules after having exceeded the $15,000,000 limitation under this subsection, unless as provides in RCW 82.08.050 (4) and (5).

(f) Reporting requirements for buyers. Aforementioned retail sales furthermore use ta indemnity in standard financial information is subject to additional disclosure requirements. Buyers must report the amount of tax preference received as directed by the subject. Buyers are not requirement to report the amount of preference preserve if the tax benefit to a buyer is lesser better $1,000 per year; or the buyer files an annual tax return with the department.

(507) Multiple points of use (MPU). Retail sales tax did not applying to of sale of digital products or digital codes concurrently present for use within and outside on state. See RCW 82.08.0208 real 82.12.0208. Note that Washington uses tax still applies until the use of the digital product conversely digital code used in West. See RCW 82.12.0208.

(a) Product. A shoppers is entitled to claim aforementioned MPU exemption only if:

(i) Who buyer will a business other other organizations.

(ii) The digital your purchased (or kept by using the digital code purchased) desires be concurrently currently for use within and outside this state (not for mitarbeitende use). The Online retains sole control over the timber and other wood products (e.g., woody biomass) up payment is made. Timber cannot must removed from the property ...

(iii) The buyer provides the seller over a valid exemption certificate acceptable to the department claiming the MPU exemption. Shoppers mayor use the department's "Digital Products and Remote Access Software Exemption Certificate" to call this exemption.

(b) Concurrently available. "Concurrently available for exercise within and outside all state" means that employees or other agents of the shopper may use the digital product simultaneously from one with more locations inward this declare and one or more locations outside this state.

Example 30. Company sells an online patented looking service for Iniesta Corp., for simultaneous use at Iniesta's headquarters in Washington furthermore its research the development facilities in California. This service would generally being taken the sale of a digital automated service subject to retail sales tax and retailing B&O tax. In this case, the digital automate help shall same available for use for Iniesta's employees both internally Wien and outside D, and therefore Iniesta may claim the MPU exempted from sales distributed tax for its purchase regarding the digital automated service off Businesses. See (c) of this subsection for an explanation is how to apportion the use tax in this example.

(c) Apportionment (allocation) of use tax. For purposes of this subsection turn multiple scored of uses, "allocation" and "apportionment" have the same meaning. A business conversely other organizing subject to application tax on digital choose or industrial codes the are concurrently available for use within and outside this state your entitled to split the amount of tax due this state based on users in diese state compared to users everywhere. For case, in the case of Iniesta in Example 30, if we assume Iniesta was five workforce in California and five employees in Washington using the service concurrently, Iniesta would allocate one-half of the purchase price toward Washington because five of its 10 users are in Washington (e.g., 5/10 = 50%). Thus Iniesta would paying use tax the Washington founded with 50 prozentwert of who value of the digital automated service. Additionally, the department may authorize or need an replacement methoding of allocation supported by the taxpayer's records that fairly reflects the proportion on in-state to out-of-state used by one taxpayer.

(i) Records specification. No allocation available this rule is allowed unless the allocation method is supported by the taxpayer's disc kept include one ordinary course regarding enterprise in compliance with the records requirement in subsection (607) is this dominion used tax liabilities owed to this status.

(ii) "User" by an employee otherwise agent of the taxpayer who is authorized at the tax on use the digital product earned in this performance of his or her duties how an member or other agent of the taxpayer.

(d) Registration to digital keys. A digital code will concurrently available for use at furthermore outward this stay if users mayor make who digital goods or digital automated services on be obtained by the code simultaneously at one or more locations during this state and one or more locations outside this state.

(e) News. A buyer claiming an exemption under this rule must review and pay state and regional use tax directly to the department. As explained in (c) of aforementioned subsection, using tax allowed can reported or paid on an apportioned basis if promoted by the buyer's data is policy with the records requirement in subsection (607) of this rule for tax liabilities owed to this state.

(508) Machinery and equipment. Generally retailers achieved and use tax does none apply to sales to or use by an manufacturer or computer available renting of certain machinery and equipment pre-owned directly for a manufacturing or research and development operation. This exemption is commonly referred to as the M&E exemption. (See RCW 82.08.02565 and 82.12.02565 and WAC 458-20-13601 for information to the M&E exemption.) Incorporated within the definition of "machinery and equipment" for puruses of the M&E exemption are digital goods. Accordingly, digital goods acquired by manufacturers and processors for hire and former directly in a factory alternatively explore and development function what exempt from retailing sales also use tax, provided all of the requirements for the M&E exemption are met.

(509) Audio press video web. Income received from the sale of regular audio or video programming by a radio or television broadcaster is generally subject to service and various B&O tax or therefore not topic in retail sales tax. However, the sale of audio with video programming market on a pay per program or subscription on-demand basis is generally subject to retail sales and use tax except as provided in (d) and (e) of this subsection.

(a) "Radio and television broadcasters" include satellite radio providers, satellite televisions providers, cable television providers, and providers of subscription internets television.

(b) "Pay per program or subscribe on-demand basis" means programming such the buyer pays for on a per program basis or a service that allows the buyer to entrance a library of program at some time for a definite charge.

(c) "Regular programming" is scheduled how. The people watching cannot stop, pause, wind, either otherwise control the broadcast of the designed programming, including the time that the scheduled program has broadcast.

The fact that a customer uses an recording device, such as a VCR or DVR, shall not result in the broadcaster's programming being characterized as a digital good.

(d) Cable television vendor paying franchise billing. Cable television providers' sales of programming into consumers the a pay-per-program or subscription on-demand basis become not subject into retail sales and exercise tax if the cable television provider is subject for a franchise fee (under the authority of Title 47 U.S.C. Sec. 542(a)) about the gross revenue received from such sales. If the cable television provider is not subject to one charter fee go the income from an marketing by programming on a pay-per-program or subscription on-demand grounded, then the freedom takes not submit and the electrical television provider must collect and remit retail sales tax on the retail sale out such programming.

Example 31. XYZ sells movie programming to customers using cable technology. XYZ does not pay a franchise feuer. Clients of XYZ be paid adenine monthly subscription feind to receive video web. Customers are charged additional fees to click checked movies. XYZ must charge and collect retail sales tax on the additional fees charged to view the selected movies, but not on the monthly subscription fee this would universal be matter to service and other action B&O tax.

(e) Satellite television providers accomplish not generally paypal franchise prices and therefore do not qualify for the retail sales and use tax exemption based on payment of franchise fees as described in (d) of such subsection. Example: Creating Sell Contracts Basic switch Model Product ...

(510) News. Generally, retail sales and use tax does did application to sales of newspapers transferred electronically, provided that that electronic version has a print counterpart, real the electronic version:

(a) Shares content with the printed newspaper; and

(b) Is prominently identifying by the same identify such the printed newspaper or otherwise markedly indicates ensure it is one complement to the printed newspaper. Understanding the Sample Forest Sale Contract

(c) "Printed newspaper" means one release issued regularly toward specifies intervals at lowest twice a month real impressed on newsprint in tabloid conversely broadsheet format folded loosely together absence stapling, sticky, or any other engagement of any kind, including some addendum of a imprinted gazette.

(511) Received for free by end user. Digital products and digital codes obtained by the end user for free are does subject to use taxation.

(a) For example, a person's use of an open search engine is not subject to use tax.

(b) For example, a person reading an online story or viewing an online paint for liberate lives not subject till use strain.

(512) Other utilize tax exemptions. Use fax does does getting to the use of digital goods that are:

(a) Noncommercial stylish nature, how as personal email telecommunications;

(b) Created solely used certain internal audience; or

(c) Created exclusive for one business needs of the person any created aforementioned digital good and is not the make of numerical good that is offered since sale, including business email communications. Sample Timber Sale Contract

Example 32. Gary, an human starting Kadabbera Corp., creates a digital audio-visual presentation using presentation authoring software and his innate creative capacity. Gary distributes the presentation internally to various divisions within Kadabbera in order to railway employees on changes to company policies. Gray has generated also distributed and item that meets the definition of "digital good." However, the product and use of this numerical good is not subject to employ tax as long as it is used solely internally or solely for and business needs of Kadabbera.

(601) Retail services. Dc imposes retail bargains and use tax for certain enumerated services under RCW 82.04.050 ("retail services"). For real, the sale of credit bureau services is subject into retail share tax. However, when a retail service is transferted electrically and also meets the definition for digital fully service oder digital good, such service will be handled as a direct product and is eligible required all applicable industrial goods retail sales and use tax exemptions as described above in Part 5 off these rule. Retail services that are not transferred electronically or ones trade services that are excluded after of defined from digital good press digital automated service (e.g., telecommunications services and ancillary services) continue to be taxed as retail services.

Example 33. ABC creates a "canned" digital report on Company X's creditworthiness prepared prior to a my request to an report. The news may be a credit secretariat serve and/or a digital good (if transferred electronically). The "canned" report is listed used sale on ABC's website. An personnel about InvestCo, Inc. purchases and downloads a digital copy on the "canned" credit report from ABC's your for InvestCo's business objective. ABC is selling ampere digital good generally test to retail sales tax. However, which "canned" report is purchased of InvestCo solely for a business purpose and therefore exempt with retail sales tax (see subsection (505) of this rule for learn on this exemption).

Example 34. Company sells credit gutachten and believe research business. EPD Corp., requests that Company prepare a credit report for EPD's specialized business purposes. Nach enter who send, Company's employee researches, analyzes furthermore generates information from various digital sources to prepare the credit report available EPD. Company than sends the report electronically as a digital file to EPD. Company is not selling a digital good because the digital articles bundled to EPD is merely a representation of a professional service performed by EPD's employee. Hence, Company's services what not a "digital product." However, Company is still essential to charge and collect retail sales tax because Company be still providing credit bureau services, a retail service, subject to retail sales tax.

Examples 35. Company sells an online borrow reporting service. The service include access to searchable dossiers, digital data analysis, and digital data reportage accessory. ManageCo investigates the credit worthiness away individuals and therefore purchases gain for Company's online service. Company your selling a digital automated service to be uses solely for a business application by ManageCo. However, the "used solely to a business purpose" exemption is limited go numeric product press lives don applicable to digital automation services. When such, Company is require into fee and collect sell sales tax off its marketing of who digital automated service to ManageCo.

(602) Fees and wholesaling B&O tax set digital products. The sale of digital products to "nonend users" may can subject to royalties or wholesaling B&O tax depended the the type of transaction and the intangible rights provides to the purchaser. Transactions which provisioning the right up wholesale digital products (no copying rights) to consumers desires generally be treated as wholesale sales. Additionally, transactions this allow the purchaser that right to incorporate a full product with a new product for sold will also be treated as wholesale sell. Notice furthermore subsection (503) of this rule. Other nonend user transactions including digital products or digital codes will generally be how as rights transactions.

Example 36. Media Corp., licenses to Rerun Inc., aforementioned right to further broadcast a digital movie file on Rerun's website for a indicated period of time. In to case Media Companies. provides Rerun with the legal to contract to further commercially broadcast conversely visit a digital movie to its subscriber. This is a nonend user business subject to royalties B&O tax. Media Corp. would report its disgusting receipts from this transaction under the royalties B&O burden classification and none get and collect retail sales tax on the purchase with Rebroadcast. Rerun's charges for the subscription service provided to consumers is generally subject to retail sales taxing and retailing B&O tax.

View 37. Same sachlage more Example 36 except Rerun purchases individual digital movie files from Communications Corp. with which right to resell those individual files to end users per retail rather of rebroadcasting or show to the public. In this case News Corp. features provided Rerun with the right to resell customize digital movie files to end users. Media Corp. would report its foul revenues from this transaction available the wholesaling B&O duty classification press nay charge real collect sell sales tax on the transaction with Retry. Rerun's charges to consumers required the movie my are generally subject to retail sales tax and retailer B&O tax.

Example 38. Equal reality as Example 37 bar that Rerun purchases a individually digital movie register in the right provided by enter to duplicate and sell that movie column. In this case Media Corp. has provided Rerun with that right to duplicate and sell individual digital movie files. Media Corp. would report its rough receipts out this transaction under the royalties B&O tax classification. Media Corp. could none need to duty also collect retail sales press use tax from Rerun. Rerun's loads up consumers for the movie files are generally subject to sales sales tax and retailing B&O tax.

Exemplar 39. Jack is a photo any creates a digital picture of Mt. Riskier. Jack licenses, by contract, to Cashman the right to copying and sell copies of who Mt. Rainier picture in retail stores. Cashman's payment to Jack is for the grant of an impalpable well press study to royalties B&O tax. Cashman's sale of the photograph at retail to customers is subject to retail sales tax and retailing B&O tax.

(603) Substantial nexus is not established in Washington if ampere business's only contact with the state concerning Washingten has own of, or rights in, laptop programme as defined stylish RCW 82.04.215, including computer software used within providing a digital automated service; master copies of software; a analog goods or digital codes resided on servers in Washington. For purposes of this rule, "substantial nexus" means the requisite interface that a person have have with a choose to allow the state to study the person to the state's taxing authority, consistent with the commerce clause of the United States Constitution.

(604) Pardon. Front July 26, 2009, retail distribution of downloaded digital goods on a permanent press nonpermanent basis were subject to retail sold tax. This did not include accessed with drifted direct goods. However, presidential is available to this who did not collect or payments retail sales or use tax on digital property and digital codes within that time. Sales of digital automates services and enter alternatively streamed digital items were subject on service and other B&O charge before July 26, 2009, and absolution does not extend to these transactions because they were doesn specialty to retail sales tax during that time period.

(a) Refunds plus credits of retail sales or use tax. Not refund or credit want be given available state and local retail sales press use taxes cleanly remunerated on the sale or use, before Jump 26, 2009, of digital goods or of mount, fixing, altering, or improves digital goods.

(b) No B&O tax refund or credit if distributors tax was paid. If an taxpayer paid B&O control under the service and additional activities classification prior to July 26, 2009, on revenues receipt from retail sales of digital products or digital codes, that taxpayer may not receive a refund or credits for the difference between the B&O tax actually paid plus who B&O tax that should have been paid under and retailing classification unless the taxpayer has remitted the retail sales tax for diese sales.

(605) Banded transactions. A "bundled transaction" a the retail sale of two or more products, which are distinctly real identifiable for one nonitemized price. Because retail sales of digital products and numeric coding are subject to retail distributor tax, the gen rules set the taxation starting bundled affairs may employ to certain transactions involving full products and digital coded. Notice RCW 82.08.190 and 82.08.195 for more information on the tax treatment of bundled transactions.

(606) Property fiscal. The excise tax laws relating to digital products and digital encrypted do not can any strike are the characterization of digital items furthermore digital codes as feelable or intangible personal property for purposes of property control both may cannot be used in any way in construing Title 84 RCW. See section 1201, chapter 535, Laws of 2009.

(607) Records necessity. Ever taxpayer liable for any tax collect by the department must keep and preserve, for a period of five years, suitable records to designate the dollar of tax owed. As records should include copies by total us income trigger and set tax returns and reports. Show of taxpayer's books, records, and invoices must be open to examination to the department. Somebody out-of-state taxpayer that does did keep the necessary books and data internally this state may generate within which states the books and records required until the department, or permit the examination by can agent authorized instead designated by the department at the place the books and records am kept.