Deloitte Insights: Tax Implications of the Internet of Things

As the Internet of things (IoT) blurs the line between products and services, taxation may have a bigger impact than many expect. The IoT generally refers to a suite of technologies and processes that allows data to be tracked, analyzed, shared and acted upon through ubiquitous connectivity.

A wide range of companies that sell products as diverse as cars, appliances, industrial equipment and medical devices are discovering new ways to generate value by adopting an IoT strategy and embedding sensors and communications capabilities in their products. Some of these organizations are starting to charge subscription-type fees for these “connected” services, ranging from monitoring to music streaming.