Specified digital products and the three digital work types (audio-visual works, audio works and books) may not be placed by a member state within its definitions of ancillary services, computer software, telecommunication services or tangible personal property, whatever the purchaser or the rights granted; the three work types are separate definitions for Section 327(C) and the matrix. A state taxing products transferred electronically separately from tangible property need not use these terms. A statute taxing these products, or since 1 January 2010 any product transferred electronically, applies only to sales to end users (giving the code or product away still counts as end use; buying for commercial broadcast, retransmission, licensing or distribution does not), only to sales with a right of permanent use (presumed unless the agreement or circumstances show the right ends on a condition), and only to sales not conditioned on continued payment, unless the statute expressly and separately taxes the other cases, which the state must flag in its matrix. A state may treat subscriptions (a right to obtain products of the same tax treatment in a fixed quantity or period) differently. A digital code is taxed like the product it gives access to and its sale is the transaction. A state may exempt or not tax specific items within the definition only if the same items in non-electronic form are not taxed (amended May 13, 2026). Transferred electronically means obtained other than on tangible storage media.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.