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I sell computer software which I developed. Do I charge sales tax when product is delivered via electronic file download or CD?

Full Question: I currently have a business that sells computer software which I developed. Would I charge the customers sales tax when the product is delivered via electronic file downloaded to them? Would I charge sales tax on if they purchased the CD version of the product?

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Answer:

Diane Yetter photoAssuming you have nexus and are registered to collect sales tax in New Mexico, the sale of tangible personal property including software delivered on a CD is subject to tax and therefore you would need to charge sales tax on those sales. If the software is delivered electronically to customers in New Mexico, this is also subject to sales tax. The rules vary across the states on the taxability of software delivered electronically. However, all states tax canned off the shelf software delivered on CD.

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