More and more software is sold these days without any physical media at all. Think, in particular, of the App Store for iPhone/iPad.

I would however still think of it as a “tangible good” even if the only way you can touch it is on your touch-screen. I think it’s more that the language used to describe or define “goods” is out of date.

Certainly there is a difference between a database I build for a customer (as a service) and a bag of Fritos. But is there really a difference, beyond taste, between Angry Birds Rio and a bag of Fritos?

And if there is, to whose advantage is that difference?

Anyway, the thing that brought me here was an investigation into an economic zone in the EU where significant tax breaks are offered on income from the sale of tangible goods produced in the area. It’s basically a job-creation subsidy, but if software isn’t a tangible good they would refuse the subsidy to a very desirable class of job.

I really don’t think they’d do that on purpose, but I imagine they would do it out of inertia.

If you’re aware of any precedent on that in the EU I’d love a link. Also: nice blog.