30 May '15, 2pm

State of Washington Says Domain Registrations Are Subject To Sales Tax

According to a ruling from the State of Washington this week “Internet domain name registration services are generally subject to retail sales or use tax. This article only addresses the initial sale of a domain name by a registrar. The Domain Name System helps users find their way around the Internet. Every computer on the Internet has a unique address, called an Internet Protocol (IP) address. Website owners then buy an easy-to-remember domain name. For example, instead of typing in an IP address (such as 192.0.34.163), a user would type in a domain name (icann.org) to access a website. Third-party domain name registrars sell domain names. Registrars assign a unique domain name from a domain name registry and ensure they lead to the right IP address (Det. No. 11-0081, 32 WTD 46 (2013) ). Under the law, “sale at retail” and “retail sale” include sales of digital automated...

Full article: http://www.thedomains.com/2015/05/30/state-of-washington-...

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