Digital goods and services have their own set of VAT rules in many countries around the world. The definition of digital goods and services is generally broad and varies slightly depending on the country.
The factors that typically lead to a digital good/service classification are that the product/service is:
- delivered over the Internet or an electronic network
- essentially automated and involves minimal human intervention
- would not exist without technology
- is not a physical good
Some common examples of digital goods and services are:
- Downloaded or remotely accessed software (such as SAAS)
- Cloud computing services
- Streaming or downloading movies, tv shows, or music
- Website hosting or remote maintenance
- Electronic supply of images, text, or information like e-books
- Downloadable or online games