North Dakota Sales Tax on Software and Digital Products North Dakota: Sales Tax Handbook

North Dakota:

Are Software and Digital Products subject to sales tax?

While North Dakota's sales tax generally applies to most transactions, certain items have special treatment in many states when it comes to sales taxes. This page describes the taxability of software and digital products in North Dakota, including canned software - delivered on tangible media, canned software - downloaded, custom software - delivered on tangible media, custom software - downloaded, customization of canned software and digital products. To learn more, see a full list of taxable and tax-exempt items in North Dakota.


Canned Software - Delivered on Tangible Media
TAXABLE
Sales of canned software - delivered on tangible media are subject to sales tax in North Dakota.

Canned Software - Downloaded
TAXABLE
Sales of canned software - downloaded are subject to sales tax in North Dakota.

Custom Software - Delivered on Tangible Media
EXEMPT
In the state of North Dakota, it is considered to be exempt only if the charges for the custom software are separately stated.

Custom Software - Downloaded
EXEMPT
Sales of custom software - downloaded are exempt from the sales tax in North Dakota.

Customization of Canned Software
TAXABLE
In the state of North Dakota, it is considered to be exempt so long as the charges for modifications are separately stated.

Digital Products
EXEMPT
Sales of digital products are exempt from the sales tax in North Dakota.



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Source: http://www.salestaxhandbook.com/north-dakota/sales-tax-taxability/software-and-digital-products