A: Yes. Sales or purchases of "digital downloads" from the Internet are subject to Connecticut sales or use tax. As long as no tangible personal property is provided in the transaction, sales or purchases of "digital downloads" are treated as sales or purchases of computer and data processing services, and taxable at a 1% rate. However, if tangible personal property is provided in the transaction, the sale or purchase of "digital downloads" is treated as the sale or purchase of tangible personal property, and taxable at the 6.35% rate.
This answer is intended to provide general information concerning a frequently asked question about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services. It may include an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS). However, it is not intended to serve as a legal ruling.