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Understanding Digital Taxes for Online Courses: A Guide for Educators

  • Teaching is a respected profession, and online course creators are appreciated for their contributions.
  • Quaderno offers guidance on how digital taxes impact online course businesses.
  • Students may need to pay consumption tax when purchasing online courses.
  • Sales tax for online courses varies by country and platform.
  • Tax factors depend on course traits, such as whether it’s downloadable, pre-recorded, or live.
  • Live webinars are generally not taxed as digital products.
  • Courses with human interaction are typically not subject to digital tax.
  • Courses contributing credits toward a degree are usually not taxed.
  • Physical materials accompanying courses can be taxed.
  • US sales tax for online courses is complex and varies by state.
  • 24 states follow the Streamlined Sales and Use Tax Agreement for consistency.
  • Live digital online educational services are not taxed under SSUTA guidelines.

Source: quaderno.io

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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