- Maryland enacts a 3 percent sales tax on IT and data services effective July 1, 2025
- The legislation expands the definition of taxable services to include specific IT services
- Taxable services include data processing, web hosting, cloud computing, and streaming support
- Excludes actual content distribution
- Companies operating platforms for information retrieval are subject to the tax
- IT expertise services like custom software development and technical consulting are included
- Software creation and distribution services are liable for the tax
- The legislation applies the same sourcing rules as digital codes and products
- Buyers can provide a certificate for multiple points of use
- Businesses must register with Maryland Tax Connect to file taxes online
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
