![]() There was a time when Internet retailers could avoid US state taxes entirely or only charge in the state they did physical business. ![]() The change has come over the last decade. Some streaming services like Netflix may also charge state sales tax (taxes on streaming and cloud services varies between states but the trend is to impose taxes on this growing market).Google Play charges tax on books, magazines, music and video.Apple charges state sales tax on most iTunes purchases including apps, music and ebooks.Amazon does the same thing for downloadable software and Kindle ebook purchases. ![]() Also Microsoft 365 cloud services like Exchange Server hosting. Microsoft charges US state sales tax on Microsoft 365 packages including Family and Personal ‘subscriptions’. ![]() Sales Tax is usually charged based on the billing address of the credit card (because there’s no physical delivery address). That can add up to 7.5% to the cost of an Microsoft 365 subscription, maybe more. Microsoft, like many online retailers, charges US state sales tax for virtual products like Microsoft 365 subscriptions or Office 2021. It’s possible to save even more on Microsoft Office 365, software downloads and ebooks. ![]()
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