Summary:
Destination Based Sales Tax.
General Sales Tax Rate: 4%.
Over $100,000 in sales OR 200 transactions during the current or prior calendar year.
Transactions made through a registered marketplace facilitator excluded: No.
Transactions made to a reseller excluded: Yes.
Limited to certain transaction types: TPP only.
Services: Not taxable.
Beginning January 1, 2024, in Georgia, if you buy a digital product like an e-book or a movie and get to keep it permanently without needing to make ongoing payments, you'll have to pay sales tax on it.
For example, if you purchase an e-book for a one-time fee, that purchase will be taxed.
If you subscribe to a streaming service like Spotify or Netflix, where you make monthly payments to access digital content, that purchase would not be taxed under the new rule in Georgia. The tax only applies to digital products you buy and keep permanently without ongoing payments. In this case, since you're paying regularly for continued access, the new tax wouldn’t apply.
SaaS Products: Not Taxable.
When To Register: Next transaction after you meet the nexus criteria.