Patrick Cox is a partner with Nixon Peabody LLC and a member of the law firm’s tax team who focuses on various tax aspects facing domestic and international companies. We recently asked him to share some thoughts on taxation trends in the area of digital goods and services.

What is one common misconception you hear about taxing digital goods and services?

Clients will often ask, “If I don’t have a physical presence in the state or foreign country, how can I be subject to tax in that jurisdiction?”

How are states expanding tax rules to cover software, cloud services, and digital products?

Maryland’s digital advertising tax is the most well-known when it comes to new forms of digital taxation. This is a first-of-its-kind taxation of revenues a company receives from advertising on the

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