Tax Category Selection Helper

What category of product are you selling?

Software (Downloaded)

ProductDescriptionTax Code
Software (business-to-customer)Computer software sold its various forms that is transferred either through physical media, electronically or through “load and leave” to a non-business end user customer and not to business.DC020000
Software (prewritten/canned) electronically downloaded (business-to-business)Computer software that is transferred electronically that is not customized, sold to a business customer.DC010500
Custom software – physical media (business-to-customer)Customized software that is transferred through physical media. custom software is deemed to be software that is written to an individual customer’s specifications, and not merely a minor modification or add-on to canned software.DC020100
Custom software – electronically downloaded (business-to-customer)Customized software that is transferred electronically rather than through some form of physical media. custom software is deemed to be software that is written to an individual customer’s specifications, and not merely a minor modification or add-on to canned software.DC020200
Software – (prewritten/canned) physical media (business-to-customer)Computer software that is transferred through physical media that is not customized. Sold to a non-business customer.DC020400
Software (prewritten/canned) physical media (business-to-business)Computer software that is transferred through physical media that is not customized, sold to a business customer.DC010400
Software – non-educational – prewritten/canned – physical media (business-to-business)Computer software that is primarily designed for something other than for academic educational purposes that is transferred through physical media and is not customized in any way. Sold to a business customer.DC020402
Software – (prewritten/canned) electronically downloaded (business-to-customer)Computer software that is transferred electronically that is not customized, sold to a non-business end user.DC020500
Software – educational – prewritten/canned – electronically downloaded (business-to-business)Computer software that is primarily designed for academic educational purposes only that is transferred electronically and is not customized. Sold to a business customer.DC020501
Software – non-educational – prewritten/canned – electronically downloaded (business-to-customer)Computer software that is primarily designed for something other than academic educational purposes that is transferred electronically and is not customized. Sold to a non-business customer.DC020502
Computer software – non-educational – prewritten/canned – electronically downloaded – (business-to-business)Computer software that is primarily designed for something other than academic educational purposes that is transferred electronically and is not customized. Sold to a business customer.DC020503

Games

ProductDescriptionTax Code
Games – electronic download – permanent ownershipGames that are downloaded electronically and have a perpetual license.DG010300
Games – electronic subscriptionGames – streaming / electronic download with less than permanent ownership. Note: use of this code will apply the Chicago amusement tax to all transactions made to Chicago addressesDG010302
Digital goods: games-physical mediaGames that are transferred to the customer through standard physical means.DG010100
Electronically-delivered gift cardsDG020000

Lessons, Learning

ProductDescriptionTax Code
Training / webinar / saas platform / subscription / no download of course or course materialsSubscription to access online courses or webinars where no download of course or materials is available. Charges for training that is not associated with the sales of computer software.ST087650
Online trainingST087634
Training and seminarCharges for training that is not associated with the sales of computer software. this tax code is normally associated with general training, seminars and conferences where the sponsor disperses important information and the audience is educated by qualified representatives.ST080000

Domains, Hosting, Cloud Storage

ProductDescriptionTax Code
Website – domain registration – for business useSW050301
Website – hosting – for business useNote: use of this code will apply the Chicago personal property lease transaction tax to all transactions made to Chicago addresses.SW050403
Data services – storage and retrievalIncludes remote storage via cloud services.SD021100
Cloud/remote storageDC070000

Other

ProductDescriptionTax Code
Temporary unmapped digital goods SKU – taxable defaultA digital good that has not been mapped to a specific digital good tax code. This temporary unmapped code has a taxable default and will impose tax in all cases unless an entity or use base exemption is applicable. The purpose for using this code is limited to getting a SKU assigned to a system tax code until it can be adequately reviewed and a specific tax code can be accurately assigned.D9999999
Temporary unmapped service SKU – taxable defaultS9999999
Temporary unmapped tangible personal property SKU – taxable defaultThis code can be used to map to products where a specific system tax code has not been identified for taxability purposes or the product is known to be taxable in all taxing jurisdictions.P9999999
Computer hardware packages (cpu, monitor, mouse, keyboard and speakers): other accessoriesPC080400
Advertising services – online advertisingSA036298
Dues/membership feeDues or membership fees that could include or not include the transfer of tangible personal property, including the right to make purchases or to purchase goods and services for a reduced fee.OD020000
Rental or lease pursuant to a rental-purchase agreement (rent-to-own) for rentals of audio/video equipment – non-business usePR060230
Shipping only (not paid directly to common carrier)Charges for shipping of product through a third-party common carrier paid to the seller. the charges represents the cost of transportation “only” without any additional charges for handling.FR020000
FreightCharges for delivery, shipping, or shipping and handling. These charges represent the cost of the transportation of product sold to the customer, and if applicable, any special charges for handling or preparing the product for shipping. These separately identified charges are paid to the seller of the goods and not to the shipping company.FR000000

SaaS

ProductDescriptionTax Code
Cloud services – SaaS – license agreementAn entity that retains custody over (or “hosts”) software for use by its customer. Users of the hosted software access the software via the internet, which is hosted on the server of the vendor. The vendor owns and maintains the hardware and networking equipment required for the user to access the software. This arrangement is documented with a license agreement (not a services agreement).SW053000
Cloud services – SaaS – license agreement – note: use of this code will return the low rate for Chicago’s personal property lease transaction taxFor purposes of the Chicago personal property lease transaction tax: user inputs, modifies or retrieves data or information that is supplied by the user. the data or information is unique to the user. note: use of this code will apply the Chicago personal property lease transaction tax lower rate to all transactions made to Chicago addresses.SW053002
Cloud services – SaaS – service agreementAn entity that retains custody over (or “hosts”) software for use by its customer. users of the software hosted by an asp typically will access the software via the internet, which is hosted on the server of the asp. the asp generally owns and maintains the hardware and networking equipment required for the user to access the software. this arrangement is generally documented with a services agreement (not a software license agreement). this is also commonly referred to as software as a service or cloud computing.SW054000
Cloud services – SaaS – service agreement – note: use of this code will return the low rate for Chicago’s personal property lease transaction taxFor purposes of the Chicago personal property lease transaction tax: user inputs, modifies or retrieves data or information that is supplied by the user. the data or information is unique to the user. note: use of this code will apply the Chicago personal property lease transaction tax lower rate to all transactions made to Chicago addresses.SW054002
Cloud services – saas – service agreement – for business use onlyAn entity that retains custody over (or “hosts”) software for use by its customer. Users of the software hosted by an asp typically will access the software via the internet, which is hosted on the server of the asp. The asp generally owns and maintains the hardware and networking equipment required for the user to access the software. This arrangement is generally documented with a services agreement and commonly referred to as software as a service or cloud computing.SW054003
Cloud services – saas – service agreement – database productsSW054100
Cloud services – infrastructure as a service (iaas)SW055000
Cloud services – platform as a service (paas)SW056000
Website – information accessSW050500
Application Service Provider – hosted software, server not in the stateSoftware application hosted by an application service provider (ASP). Software applications are web-based and accessed remotely via the internet. No tangible personal property is exchanged. (Note: server location may affect taxability.)SW052000
Application Service Provider – hosted software, server not in state – for business use onlySoftware application hosted by an application service provider (ASP). Software applications are web-based and accessed remotely via the internet. No tangible personal property is exchanged. (Note: server location may affect taxability.)SW052001
Computer software maintenance (canned) – optional (hosted software) – services only (remote support), server not in the stateMaintenance contracts associated with the sale of hosted software that are optional to the customer. Contract includes services only (remote support).SW052201

Content, Art, Images, Media, Audio, Video

ProductDescriptionTax Code
Digital images: streaming / electronic downloadDigital images that are transferred to the customer through electronic means only.DI010200
Digital goods: art (digital only – no physical media)Canned artwork that is transferred to the customer through electronic means.DA030000
Digital goods: music-streaming / electronic downloadMusic that is transferred to the customer through electronic means only.DM040200
Digital goods: movies-streaming / electronic downloadMovies that are transferred to the customer through electronic means only.DM030200
Digital audio works (with rights of less than permanent use)DA059399
Digital audio visual works (with rights of less than permanent use)DV021008
Digital audio works sold to an end user with rights for permanent useDA051011
Digital audio visual works (with rights of less than permanent use)Videos that are transferred to the customer through electronic means only. for purposes of the Chicago amusement tax only: privilege of watching electronically delivered television shows, movies or videos wherein no possessory interest or permanent title is granted. subscription or pay-per-view streaming. note: use of this code will apply the Chicago amusement tax to all transactions made to Chicago addresses.DV021010
Digital goods: designs / plans (digital only – no physical media)Designs or plans that are transferred to the customer through electronic means only.DD020000
Digital goods: photographs-streaming / electronic downloadPhotographs that are transferred to the customer through electronic means only. (note: “electronic delivery” may be required to be stated on the invoice to qualify for exemption in some jurisdictions)DP010200
Digital audio visual works sold to an end user with rights for permanent useDV021007
Digital goods: advertising material (digital only — no physical media)Tangible personal property (i.e. designs, artwork, photos etc.) associated with advertising services that is transferred to the customer through electronic means only.DA010000
Audio products (tapes, cds etc.)PA100000
Books / manualsPB100000
Other digital goods – no physical mediaOther sales not specifically identified by another tax code that are transferred to the customer through electronic means only.DO010000
Digital magazines (digital version identical to printed version for non-business use)Digital magazines mean works that are generally recognized in the ordinary and usual sense as magazines, published in regular intervals, transferred electronically as digital files. If the magazine is sold in a hard-copy version and a digital version, both versions have the same information. The magazine is also sold for non-business use.DM010100
Digital books sold to an end user with rights for permanent useDB031013

Tech Support, IT, Consulting, Services

ProductDescriptionTax Code
Computer software implementation (implementation, installation and training) – associated with the sale of softwareImplementation-type services that are associated with the sale of computer software. implementation services can include installation and/or minor configuration/set-up and/or training. the implementation services can be associated with both prewritten as well as custom computer software.SC070000
Computer software technical services: prewritten software, optional service, electronically downloaded, services only (remote support)Technical support that is optional to the customer that includes “support services” only, and that is associated with electronically downloaded prewritten computer software.SC130101
Computer software implementation-training onlyTraining service associated with prewritten computer software that is part of the sale of the computer software.SC070300
Computer software maintenance (custom software)-optional (electronically downloaded)Maintenance contracts associated with custom computer software that is optional to the customer and is not required as a condition of purchasing the original computer software, and that are associated with electronically downloaded software.SC090100
Computer software maintenance contracts / agreements – optional – prewritten software (electronically downloaded) for business use only – downloaded updates and support servicesMaintenance contracts associated with electronically-downloaded prewritten software for business use only. contracts are optional to the customer and are not required as a condition of purchasing the software. contracts include downloaded updates and remote technical support services.SC100122
Computer software maintenance (prewritten software)-computer optional (physical media)-physical media, updates & services, etc.Maintenance contracts that are optional to the customer that include both “software updates” and “technical support services,” and that are associated with prewritten computer software transferred through physical media.SC100502
Computer software maintenance (prewritten software)-mandatory (physical media)-physical media, etc. & servicesMaintenance contracts that are mandatory to the customer that include both “software updates” and “technical support services,” and that are associated with prewritten computer software transferred through physical media.SC100602
Software programming servicesSC117314
Computer software technical services (prewritten software)-optional (electronically downloaded)-downloaded updates, etc. & servicesTechnical support that is optional to the customer that includes both “software updates” and “support services,” and that is associated with electronically downloaded prewritten computer software.SC130102
Computer software technical services (prewritten software)-mandatory (electronically downloaded)-services only (remote support)Technical support that is mandatory to the customer that includes “support services” only, and that is associated with electronically downloaded prewritten computer software.SC130201
Computer software technical services (prewritten software)-mandatory (electronically downloaded)-downloaded updates, etc. & servicesTechnical support that is mandatory to the customer that includes both “software updates” and “support services,” and that is associated with electronically downloaded prewritten computer software.SC130202
Computer software technical services (prewritten software)-optional (physical media)-services only (remote support)Technical support that is optional to the customer that includes “support services” only, and that is associated with prewritten computer software that is delivery through physical media.SC130501
Computer software technical services (prewritten software)-optional (physical media)-physical media, etc. & servicesTechnical support that is optional to the customer that includes both “software updates” and “support services,” and that is associated with prewritten computer software that is delivered through physical media.SC130502
Computer software technical services (prewritten software)-mandatory (physical media)-services only (remote support)Technical support that is mandatory to the customer that includes “support services” only, and that is associated with prewritten computer software that is delivered through physical media.SC130601
Computer software technical services (prewritten software)-mandatory (physical media)-physical media, etc. & servicesTechnical support that is mandatory to the customer that includes both “software updates” and “support services,” and that is associated with prewritten computer software that is delivered through physical media.SC130602
ConsultingProfessional advice based on a high level of knowledge and expertise. usually includes analysis, discussions, planning, deliberation and presentation of needed action or problem resolution requirements.SC160000
Data-access feesSD020100
Data-processingSD020900
Data – processing – electronic output – for business useSD020903
Canned information services – delivered electronicallyThe services of collecting, compiling or analyzing information of any kind or nature and furnishing reports thereof to other persons. These reports are generally not produced for and provided for and exclusively to a single user. Reports are delivered electronically.SI010002
Custom information services – delivered electronicallyThe services of collecting, compiling, or analyzing information of any kind or nature and furnishing of information to a person of a personal or individual nature that is not or may not be substantially incorporated in reports furnished to other persons. The true object of the transaction is the information contained in the reports, and not the reports themselves. Reports are delivered electronically.SI010004
Optional maintenance agreements related to the sale of tangible personal propertySM020200
Mandatory maintenance agreements related to the sale of tangible personal propertySM020400
Professional servicesProfessional services are generally viewed as services that are comprised of a high level of knowledge and expertise by the service provider. This code could be considered if other specific system tax codes are not applicable.SP140000
Repair performed on tangible personal property (labor only)Repair services only.SR060200
Technical support (not part of a maintenance agreement)-phoneTechnical support services that are not associated with computer software and are generally available for a per hour or per instance fee. This is a service only and no tangible personal property is transferred.ST040100
Web design services – for business useSW057243