Kansas Provides Guidance on Online Video Game Products

Friday, March 20th, 2015

 
 
Two people playing video games.
Share
Link
Kansas
Entertainment

The Kansas Department of Revenue released a letter ruling on the taxability of online video game products.

The taxpayer sold online video game products in retail stores and online. The ruling discusses sales of access codes, subscription cards, point cards, and notional dollar value cards.

The taxability of access codes depends on whether a video game or a video game add-on is downloaded onto a user's console. Sales of access codes that allow users to access, but not download, video games and add-ons are not subject to tax. The access of software (e.g., video games) is not taxable in Kansas. Access codes that allow a user to download complete video games or add-ons to its console are not taxable upon the initial purchase. However, once the access code is redeemed for downloadable video games or add-ons, there is a taxable purchase of canned software.

Kansas does not tax sales of subscription cards, point cards, and notional dollar value cards that allow users to access online networks that allow gameplay, interaction among other players on a network, access to digital online content, or the direct download of digital content to a consumer's device. Products provided through these cards are not considered to be taxable canned software.

Where these products are purchased - retail location or online store - does not affect how they are taxed.

http://rvpolicy.kdor.ks.gov/Pilots/Ntrntpil/IPILv1x0.NSF/ae2ee39f7748055f8625655b004e9335/94cd03b27a5fa02b86257e0a006157a8?OpenDocument


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at www.ttrus.com or call 866.578.8193.

Louisiana Sales Tax Rates and Exemptions Set to Change...

Friday, May 25th, 2018 -Louisiana's sales tax rates and exemptions are set to change July 1, 2018, when several 2016 law changes will ...

Florida Exempts Generators Used in Assisted Living...

Thursday, May 24th, 2018 -Florida recently adopted an emergency rule on exempt sales of emergency generators for use at nursing homes an...

Washington Penalty Reduction Program

Monday, May 21st, 2018 -Businesses that apply to register with Washington's Marketplace Fairness Penalty Reduction Program by June 30,...

Fuel Used to Heat Detached Garages Taxable in Maine

Monday, May 21st, 2018 -Maine Revenue Services recently released a publication explaining that sales tax applies to fuel that is used ...

Cloud Software No Longer Taxable in Indiana

Thursday, May 17th, 2018 -Effective July 1, 2018, cloud software will no longer be taxable in Indiana. Indiana taxes the sale, lease,...

Sales Tax Increase in the Historic Triangle Region of...

Monday, May 14th, 2018 -Effective July 1, 2018, there will be an additional one percent (1%) regional sales and use tax imposed in the...