# How data licence income is classed and taxed

> 2 of 6 tax texts read in GB and the US put a sales or use tax on information or data services, newest read 28 October 2026.

Monetise Company Data · https://monetisecompanydata.com/datasets/data-licence-income-tax-rules/ · computed 2026-10-28

**Texts that tax the data service itself:** 2 of 6 instruments (11 texts read; 12 named).

## The answers, question by question

- **What the text treats:** a sales or use tax on information or data services 2, where VAT on a supply of services falls 2, the data as an asset that is bought or sold 1, varies 1
- **Whose law it is:** not stated 5, the United Kingdom 1
- **The rule it states:** stated 6

## Every instrument

| Instrument | What the text treats | Whose law it is | The rule it states |
|---|---|---|---|
| Corporation Tax Act 2009 (UK) | the data as an asset that is bought or sold | not stated | In particular, “intangible asset” includes intellectual property. |
| Internal Revenue Code (US) | varies by document | not stated | amortizing the adjusted basis (for purposes of determining gain) of such intangible… |
| New York Tax Law | a sales or use tax on information or data services | not stated | excluding the furnishing of information which is personal or individual in nature and… |
| Revised Code of Washington | a sales or use tax on information or data services | not stated | The mere storage of digital products, digital codes, computer software, or master copies… |
| UK VAT (HMRC) | where VAT on a supply of services falls | the United Kingdom | B2B general rule services: supplied where the customer belongs (read paragraph 6.3) |
| Value Added Tax Act 1994 (UK) | where VAT on a supply of services falls | not stated | a supply of services consisting of the provision of electronically supplied services to a… |

## The sentence each answer rests on (33)

- Corporation Tax Act 2009 (UK), [HMRC CIRD11150, meaning of intangible asset](https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird11150), read 2026-10-28, What the text treats: "provides that an intangible asset ‘includes’ (and so is not confined to) ‘intellectual property’ as defined in sub-section (3)"
- Corporation Tax Act 2009 (UK), [HMRC CIRD11150, meaning of intangible asset](https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird11150), read 2026-10-28, Whose law it is: No answer on the text, which ran to 2,819 characters when read on 2026-10-28.
- Corporation Tax Act 2009 (UK), [HMRC CIRD11150, meaning of intangible asset](https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird11150), read 2026-10-28, The rule it states: "CIRD11150 - Intangible assets within CTA09/PART8: asset conditions: meaning of intangible asset: intellectual property"
- Corporation Tax Act 2009 (UK), [Section 712, intangible assets](https://www.legislation.gov.uk/ukpga/2009/4/section/712), read 2026-10-28, What the text treats: "In this Part “intangible asset” has the meaning it has for accounting purposes"
- Corporation Tax Act 2009 (UK), [Section 712, intangible assets](https://www.legislation.gov.uk/ukpga/2009/4/section/712), read 2026-10-28, Whose law it is: No answer on the text, which ran to 5,778 characters when read on 2026-10-28.
- Corporation Tax Act 2009 (UK), [Section 712, intangible assets](https://www.legislation.gov.uk/ukpga/2009/4/section/712), read 2026-10-28, The rule it states: "In particular, “intangible asset” includes intellectual property."
- Internal Revenue Code (US), [26 U.S.C. 1221, capital asset defined](https://www.law.cornell.edu/uscode/text/26/1221), read 2026-10-28, What the text treats: "the term “capital asset” means property held by the taxpayer (whether or not connected with his trade or business), but does not include"
- Internal Revenue Code (US), [26 U.S.C. 1221, capital asset defined](https://www.law.cornell.edu/uscode/text/26/1221), read 2026-10-28, Whose law it is: No answer on the text, which ran to 7,137 characters when read on 2026-10-28.
- Internal Revenue Code (US), [26 U.S.C. 1221, capital asset defined](https://www.law.cornell.edu/uscode/text/26/1221), read 2026-10-28, The rule it states: "a patent, invention, model or design (whether or not patented), a secret formula or process, a copyright, a literary, musical, or artistic composition, a letter or memorandum, or similar property, held by"
- Internal Revenue Code (US), [26 U.S.C. 1235, sale or exchange of patents](https://www.law.cornell.edu/uscode/text/26/1235), read 2026-10-28, What the text treats: "property consisting of all substantial rights to a patent, or an undivided interest therein"
- Internal Revenue Code (US), [26 U.S.C. 1235, sale or exchange of patents](https://www.law.cornell.edu/uscode/text/26/1235), read 2026-10-28, Whose law it is: No answer on the text, which ran to 2,869 characters when read on 2026-10-28.
- Internal Revenue Code (US), [26 U.S.C. 1235, sale or exchange of patents](https://www.law.cornell.edu/uscode/text/26/1235), read 2026-10-28, The rule it states: "shall be considered the sale or exchange of a capital asset held for more than 1 year"
- Internal Revenue Code (US), [26 U.S.C. 197, amortisation of intangibles](https://www.law.cornell.edu/uscode/text/26/197), read 2026-10-28, What the text treats: "business books and records, operating systems, or any other information base (including lists or other information with respect to current or prospective customers),"
- Internal Revenue Code (US), [26 U.S.C. 197, amortisation of intangibles](https://www.law.cornell.edu/uscode/text/26/197), read 2026-10-28, Whose law it is: No answer on the text, which ran to 15,418 characters when read on 2026-10-28.
- Internal Revenue Code (US), [26 U.S.C. 197, amortisation of intangibles](https://www.law.cornell.edu/uscode/text/26/197), read 2026-10-28, The rule it states: "amortizing the adjusted basis (for purposes of determining gain) of such intangible ratably over the 15-year period beginning with the month in which such intangible was acquired"
- Internal Revenue Code (US), [26 U.S.C. 61, gross income defined](https://www.law.cornell.edu/uscode/text/26/61), read 2026-10-28, What the text treats: "Except as otherwise provided in this subtitle, gross income means all income from whatever source derived"
- Internal Revenue Code (US), [26 U.S.C. 61, gross income defined](https://www.law.cornell.edu/uscode/text/26/61), read 2026-10-28, Whose law it is: No answer on the text, which ran to 1,692 characters when read on 2026-10-28.
- Internal Revenue Code (US), [26 U.S.C. 61, gross income defined](https://www.law.cornell.edu/uscode/text/26/61), read 2026-10-28, The rule it states: "gross income means all income from whatever source derived, including (but not limited to) the following items:"
- New York Tax Law, [Section 1105, imposition of sales tax](https://www.nysenate.gov/legislation/laws/TAX/1105), read 2026-10-28, What the text treats: "analyzing information of any kind or nature and furnishing reports thereof to other persons"
- New York Tax Law, [Section 1105, imposition of sales tax](https://www.nysenate.gov/legislation/laws/TAX/1105), read 2026-10-28, Whose law it is: No answer on the text, which ran to 23,726 characters when read on 2026-10-28.
- New York Tax Law, [Section 1105, imposition of sales tax](https://www.nysenate.gov/legislation/laws/TAX/1105), read 2026-10-28, The rule it states: "excluding the furnishing of information which is personal or individual in nature and which is not or may not be substantially incorporated in reports furnished to other persons"
- Revised Code of Washington, [RCW 82.04.192, digital products definitions](https://app.leg.wa.gov/RCW/default.aspx?cite=82.04.192), read 2026-10-28, What the text treats: ""Digital automated service," except as provided in (b) of this subsection (3), means any service transferred electronically that uses one or more software applications."
- Revised Code of Washington, [RCW 82.04.192, digital products definitions](https://app.leg.wa.gov/RCW/default.aspx?cite=82.04.192), read 2026-10-28, Whose law it is: No answer on the text, which ran to 26,559 characters when read on 2026-10-28.
- Revised Code of Washington, [RCW 82.04.192, digital products definitions](https://app.leg.wa.gov/RCW/default.aspx?cite=82.04.192), read 2026-10-28, The rule it states: "The mere storage of digital products, digital codes, computer software, or master copies of software."
- UK VAT (HMRC), [VAT rules for digital services to private consumers](https://www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers), read 2026-10-28, What the text treats: "The place of supply of cross-border digital services is the consumer’s location, which is determined by where the consumer usually lives."
- UK VAT (HMRC), [VAT rules for digital services to private consumers](https://www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers), read 2026-10-28, Whose law it is: "If you are a business making supplies of digital services to UK consumers, those supplies are liable to UK VAT."
- UK VAT (HMRC), [VAT rules for digital services to private consumers](https://www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers), read 2026-10-28, The rule it states: "The place of supply will be where the consumer is located."
- UK VAT (HMRC), [VAT Notice 741A, place of supply of services](https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a), read 2026-10-28, What the text treats: "B2B general rule services: supplied where the customer belongs (read paragraph 6.3)"
- UK VAT (HMRC), [VAT Notice 741A, place of supply of services](https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a), read 2026-10-28, Whose law it is: "If you belong in the UK and the place of supply of your services is the UK, you must charge any UK VAT due and account for it to HMRC regardless of where your customer belongs."
- UK VAT (HMRC), [VAT Notice 741A, place of supply of services](https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a), read 2026-10-28, The rule it states: "B2B general rule services: supplied where the customer belongs (read paragraph 6.3)"
- Value Added Tax Act 1994 (UK), [Schedule 4A, place of supply: special rules](https://www.legislation.gov.uk/ukpga/1994/23/schedule/4A), read 2026-10-28, What the text treats: "a supply of services consisting of the provision of electronically supplied services to a relevant business person would otherwise be treated as made in the United Kingdom"
- Value Added Tax Act 1994 (UK), [Schedule 4A, place of supply: special rules](https://www.legislation.gov.uk/ukpga/1994/23/schedule/4A), read 2026-10-28, Whose law it is: No answer on the text, which ran to 39,761 characters when read on 2026-10-28.
- Value Added Tax Act 1994 (UK), [Schedule 4A, place of supply: special rules](https://www.legislation.gov.uk/ukpga/1994/23/schedule/4A), read 2026-10-28, The rule it states: "a supply of services consisting of the provision of electronically supplied services to a relevant business person would otherwise be treated as made in the United Kingdom, and"

## Read and set aside

- [Texas Tax Code ch. 151 (limited sales, excise and use tax)](https://statutes.capitol.texas.gov/Docs/TX/htm/TX.151.htm): the stored read is the statutes site's shell page (1,610 characters); the text of chapter 151 is not in it

## Methodology

Each instrument's own the tax statutes and the tax authorities' own guidance in GB and the US were read through estate-fetch and stored whole (sha256 on every row). For every text, three questions were answered from its own words: what the text treats, whose law it is, the rule it states. Every stated answer carries the sentence it rests on, checked against the stored text; 'not stated' means the text read does not address the question. A instrument with several texts reads 'varies' where they disagree. 6 instruments, 11 texts.

## Sources

- [26 U.S.C. 61 (gross income defined)](https://www.law.cornell.edu/uscode/text/26/61) (read)
- [26 U.S.C. 197 (amortisation of goodwill and certain intangibles)](https://www.law.cornell.edu/uscode/text/26/197) (read)
- [26 U.S.C. 1221 (capital asset defined)](https://www.law.cornell.edu/uscode/text/26/1221) (read)
- [26 U.S.C. 1235 (sale or exchange of patents)](https://www.law.cornell.edu/uscode/text/26/1235) (read)
- [New York Tax Law s. 1105 (imposition of sales tax)](https://www.nysenate.gov/legislation/laws/TAX/1105) (read)
- [RCW 82.04.192 (digital products definitions)](https://app.leg.wa.gov/RCW/default.aspx?cite=82.04.192) (read)
- [Texas Tax Code ch. 151 (limited sales, excise and use tax)](https://statutes.capitol.texas.gov/Docs/TX/htm/TX.151.htm) (not-terms)
- [HMRC VAT Notice 741A (place of supply of services)](https://www.gov.uk/guidance/vat-place-of-supply-of-services-notice-741a) (read)
- [HMRC, VAT rules for digital services to private consumers](https://www.gov.uk/guidance/the-vat-rules-if-you-supply-digital-services-to-private-consumers) (read)
- [Value Added Tax Act 1994, Schedule 4A](https://www.legislation.gov.uk/ukpga/1994/23/schedule/4A) (read)
- [Corporation Tax Act 2009, s. 712 (intangible assets)](https://www.legislation.gov.uk/ukpga/2009/4/section/712) (read)
- [HMRC Corporate Intangibles Research and Development Manual, CIRD11150](https://www.gov.uk/hmrc-internal-manuals/corporate-intangibles-research-and-development-manual/cird11150) (read)

## Cite or embed

- 2 of 6 tax texts read in GB and the US put a sales or use tax on information or data services, newest read 28 October 2026.
- What the text treats, by instrument: a sales or use tax on information or data services 2 of 6, where VAT on a supply of services falls 2 of 6, the data as an asset that is bought or sold 1 of 6, varies 1 of 6 (6 instruments, read 28 October 2026).
- Whose law it is, by instrument: not stated 5 of 6, the United Kingdom 1 of 6 (6 instruments, read 28 October 2026).
- The rule it states, by instrument: stated 6 of 6 (6 instruments, read 28 October 2026).

Cite as: "How data licence income is classed and taxed", updated 2026-10-28, https://monetisecompanydata.com/datasets/data-licence-income-tax-rules/.

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