Georgia Implements New Sales Tax Rule for Digital Products

• Georgia DOR announced a new rule on sales tax for digital products in May 2025
• Sales of specified digital goods are taxable if the end user receives a permanent right to use them
• The rule clarifies tax location sourcing and exemptions for certain services and products
• Digital codes are taxed at purchase, not redemption
• Digital goods are taxable whether sold individually or via subscription
• Bundled transactions are fully taxable if non-taxable portions cannot be determined
• Rules effective May 6, 2025, requiring businesses to understand regulations
• Digital businesses should focus on exemptions and exclusions criteria

Source: vatabout.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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