This is located on a server in Utopia. Software House pays a monthly fee for space on the server. Software House has no business premises or employees in Utopia. The web site contains detailed descriptions of the software products available. If customers want assistance in selecting the right software, then they can correspond through the web site with a sales assistant in Republica.
Customers pay for the software by providing their credit card details.
Once the customer s credit card details are checked, Software House sends the customer an e-mail containing an order code that the customer can then use to download the software from the web site. At the start of the process of downloading the software, a message comes up on the screen explaining that the customer is being granted a licence to use the software subject to the condition that they do not make a copy of the software. Advise Software House as to whether they may be taxable in Utopia on the supply of software products to residents of Utopia.