Washington issues new regulations on software and digital products

The Washington Department of Revenue released new regulations on the taxability of software and digital products. The two new regulations, WAC 458-20-15502 and -15503 were adopted February 25, 2013, and will become effective March 28, 2013. In addition, WAC 458-20-155 on Information and Computer Services has been repealed, and WAC 458-20-15501 has been amended. The Department issued the changes to clarify the impacts of previous legislation and to address other tax issues related to computer hardware, software, and computer services. Taxpayers engaged in selling software and digital products in Washington should review these regulations as they may provide clearer guidance for distinguishing between taxable and nontaxable digital goods, software, and services. [Computer Hardware, Software, and Digital Products, Washington Department of Revenue, WAC 458-20-155/15501/15502/15503]

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