Digital Subscriptions for Physical Goods
Learn how to categorize physical goods sold via digital subscription in Kintsugi: classify as Physical, since states tax the physical item the customer gets.Updated last year
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Question:
If I sell physical goods through a digital subscription on my website, how should I categorize my product?
Answer:
When selling physical items (like razor blades or other tangible products) through an online subscription, always categorize the product based on what the customer actually receives. Although your transaction is digital and subscription-based, the customer is purchasing a physical item. States usually tax physical products regardless of the sales method.
In this scenario, categorize your product as Physical/General Physical.
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