- The Georgia Department of Revenue has enacted a regulation effective January 1, 2024, clarifying the taxation of digital products, which imposes sales and use tax on specified digital goods and codes sold to end users, provided they receive the right of permanent use without continued payment conditions.
- Beginning May 6, 2025, the regulation establishes that purchases allowing end users to download and retain digital products confer the right of permanent use, even if the right is contingent on ongoing payments, as exemplified by digital newspaper subscriptions.
- The regulation defines key terms such as “Digital Book,” “Software as a Service” (SaaS), and “Subscription,” while confirming that Georgia does not tax SaaS and maintains exemptions for prewritten software delivered electronically, with existing destination-based sourcing rules applying to these transactions.
Source PwC
