Effective January 1, 2024, Georgia will apply sales and use tax on the retail purchase of digital products, digital codes, and other digital goods that are transferred electronically to end-users in Georgia. The new digital sales and use tax will apply to the goods and products outlined below, provided that the end-user uses the digital products for personal consumption and not commercial use and is authorized to use the product, good, or code permanently after purchase with no obligation to continue paying for the product, good, or code after the initial sale.
Taxable Goods Under S.B. 56
- Specified Digital Products
- Such as digital audio video works, audio works, digital books, etc.
- Other Digital Goods
- Such as artwork, audio greeting cards, video games, newspapers, etc.
- Digital codes
- Such as key or activation codes that convey a right to obtain digital goods.
*For a complete list of taxable items, please contact us directly.
Reseller Exemption
Resellers must retain proper records and documentation to be tax-exempt from the new digital tax.
Pre-Written Computer Software Exemption
When recorded properly, the sale of prewritten computer software delivered by means of ‘load and leave’ remains exempt; however, the exemption expressly does not include the taxable sales of digital products, digital codes, or other digital goods as listed above,
Thompson Tax is Your Trusted Tax Advisor
We understand that changes surrounding tax law can be challenging to understand. That is why we aim to clarify the facts for you. Please reach out to us directly for further information.