What is a digital service?

The following elements together form a digital service:

• A service (i.e., not goods)
• Delivered via the Internet or an electronic network
• Supply is essentially automated or involves minimal human intervention
• Difficult to perform the service in the absence of information technology

Here are some common examples of digital services:

• Software products and software upgrades
• Software provided as a service (‘SaaS’)
• Cloud computing
• Downloading and playing online games
• E-books
• Subscriptions to online content
• Site hosting services, VoIP, and content
• Music, films, images, and photographs
• E-services
• Access to e-markets
• Live webinar and live webinar online
• Distance learning (pre-recorded and downloadable sessions)

And here are common examples of cases that are not classified as digital services:

• A PDF document manually emailed by the seller
• Software developer's contribution delivered and sold as a software development service

If a company supplies a package of services/goods, the company has to analyze the nature of the bundle and decide whether the complete package should be considered a digital service or whether each element in the bundle should be classified and treated separately.

For instance, if a company provides packaged software and onsite support activities as a bundle, it would be reasonable to consider the packaged software as a digital service, and the onsite support activities as a professional service instead.