You should document any electronic transfer of a product so that you can show why tax does not apply to that transaction. For instance, if you electronically transmit an image to a customer by email, you should print out a copy of the transmittal email and retain that copy in your records. You may also note on your sales invoice that the product was transferred electronically and the date transferred. If you transfer an image by FTP or download it to your customer’s computer directly from your computer, a CD, or another storage media that you keep (the “load and.
