- Georgia’s Department of Revenue is consulting on new regulations for taxing digital product sales.
- The proposed rules will implement Senate Bill 56, expanding sales tax to digital goods starting January 1, 2024.
- Public comments on the regulations are due by December 19, 2024.
- The tax will apply to digital products sold for permanent use, regardless of how they are accessed (downloaded, online, or hosted).
- Purchases that allow permanent use, even with continued payment, are taxable (e.g., digital newspaper subscriptions).
- Transactions involving both NFTs and taxable digital products will have the entire transaction taxed.
- Exemptions include:
- Internet access service
- Prewritten computer software transferred electronically
- Software as a Service (SaaS)
- Subscriptions without permanent use rights
- Dealers who purchase digital products for resale must pay use tax if the products are withdrawn from inventory for taxable purposes.
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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