Iowa Admin. Code r. 701—211.36(423) — Video game services and tournaments

211.36(1) In general. Persons engaged in the business of providing video game services and tournaments are selling a service subject to sales tax. Taxable services relating to video game tournaments include fees paid for participating in such tournaments and related services as well as observing a video game tournament. Participation in or observation of such tournaments is taxable regardless of whether or not a prize is provided to any participants. 211.36(2) Definitions. For purposes of this rule: “Video games” means any virtual, digital, or electronic game in which a user interacts with a user interface to generate visual feedback on a video device such as a computer monitor, television screen, or mobile device. Video games may be transferred through any physical or electronic medium, including by cartridge, disc, or electronic file, or through access to any server or network of servers. “Video game services” means providing access to video games, support and account services, in-game currency exchanges, payment processing services, and any other service related to the hosting or provision of video games. “Video game tournament” means an event where participants compete in the playing of video games. Participants may be playing video games by being physically present in the same location or playing remotely.