Digital Products Subject to Georgia Sales and Use Tax
GA: Effective January 1, 2024, sales of specified digital products, other digital goods, and digital codes sold to an end user in Georgia are subject to Georgia sales and use tax, provided that the end user receives or will receive the right of permanent use of such products, goods, or codes. The transaction is not conditioned upon continued payment by the end user. The tax will apply regardless of whether possession of the specified digital products, other digital goods, or digital codes is maintained by the seller or a third party.
“Specified digital products” means digital audio-visual works, digital audio works, or digital books.
“Other digital goods” means the following items transferred electronically to an end user:
Artwork
Photographs
Periodicals
Newspapers
Magazines
Video or audio greeting cards
Video games or electronic entertainment
“Digital code” means a key, activation, or enabling code that conveys a right to obtain one or more specified digital goods or other digital goods. Such term shall not include a code that represents a stored monetary value that is deducted from a total as it is used by the purchaser or a redeemable card, gift card, or gift certificate that entitles the holder to select specified digital goods or other digital goods of an indicated cash value. (Act 236 (S.B. 56), Laws 2023)
A sale of any specified digital product, other digital good, or digital code will be considered a sale for resale if the item is subsequently sold, licensed, leased, broadcast, transmitted, or distributed, in whole or in part, as an integral, inseparable part of a service or another such product, sound, or code by the purchaser of the item to an ultimate consumer. The purchaser of the item for resale shall maintain records that substantiate the sale for resale.
About Davis Davis & Harmon LLC – Sales Tax Experts: Headquartered in Dallas, Texas, Davis Davis & Harmon LLC – Sales Tax Experts specializes in sales/use tax refund recovery and audit defense. Our team of consultants is comprised of former Big 4 sales tax consultants and state sales tax auditors. Each of our consultants has 15 to 20 years of experience, providing our clients with access to a highly specialized team of sales/use tax professionals. At Davis Davis & Harmon, LLC, we are committed to maintaining the highest standards in our talent pool. We work hard to meet our clients’ needs by ensuring that you view our firm as an extension of your company and a member of your team.