- Maryland Governor signed House Bill 352 on May 20, 2025
- The bill expands sales tax to digital and IT services starting July 1, 2025
- New regulations apply to data and IT services, software publishing, and related services
- Previously, digital services in B2C and B2B transactions had limited taxability
- From July 1, 2025, a 3 percent sales and use tax will apply to a wider range of digital services and products
- As of March 14, 2021, canned or commercial off-the-shelf software is taxed at 6 percent
- Many software types are currently exempt from Maryland sales and use tax
- New amendments will change the taxability scope for technology services
- Taxable services include application hosting, cloud computing, data processing, IaaS, PaaS, and more
- Software publishing services will also become taxable
- The changes are based on the North American Industrial Classification System (NAICS)
Source: 1stopvat.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.
