Georgia sales tax on software and maintenance programs

Georgia sales tax on software and maintenance programs
Canned Software – Delivered on Tangible Media
TAXABLE
Sales of canned software – delivered on tangible media are subject to sales tax in Georgia.

Canned Software – Downloaded
EXEMPT
In the state of Georgia, any documentation created must show the method utilized for delivery. If software is delivered both electronically and through the use of a tangible medium, the transaction will be treated as a taxable sale of some sort of tangible personal property, with the exemption of any software which would qualify as custom software.

Custom Software – Delivered on Tangible Media
EXEMPT
Sales of custom software – delivered on tangible media are exempt from the sales tax in Georgia.

Custom Software – Downloaded
EXEMPT
Sales of custom software – downloaded are exempt from the sales tax in Georgia.

Customization of Canned Software
TAXABLE
In the state of Georgia, any rewritten computer software, whether it is modified to the specifications of a customer or not, is still deemed prewritten computer software. This being the case, however, so long as there is a separately stated charge on the dealer’s invoice for the modification or enhancement, the charge is will not subject to tax.

Digital Products
EXEMPT
Sales of digital products are exempt from the sales tax in Georgia.
Georgia sales tax on software and maintenance programs
Ansari Law Firm

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