- Indiana DOR ruled AI chatbot subscription services are not subject to sales tax.
- The company providing the AI services is located outside Indiana.
- Services include writing, analysis, coding, and problem-solving via a chatbot.
- The chatbot is accessed online or through an app, not downloaded.
- Customers can use the chatbot’s API for integration into their applications.
- Indiana taxes tangible personal property, certain services, and specified digital goods.
- Specified digital products include digital audio, audiovisual works, and digital books.
- AI chatbot services do not qualify as prewritten software or specified digital products.
- The ruling is specific to the facts presented to the Indiana DOR.
Source: salestaxinstitute.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.
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