New tax on the sale and use of digital goods in Maryland

March 25, 2021

From 14 March 2021, a 6% tax on the sale and use of digital goods will apply to the following digital products if they receive or deliver electronic means:

• Electronic books, newspapers, magazines, periodicals, or other publications;
• Digital films, music videos;
• News and entertainment programs, live events, sporting events;
• Digital audio files that can be downloaded to devices;
• Subscriptions or licenses for this content online;
• Subscriptions or licenses to use the software;
• Commercial software vendors;
• Watching or attending training programs, seminars, or conferences that take place electronically;
• Pre-recorded or live music is streamed via the Internet
• Performances;
• Books or other written materials.

All of these digital products are taxed under Maryland law. This law came into force on 2021 March 14.