Georgia — Sales & Use Tax

Georgia imposes a state sales tax at 4% on retail sales of tangible personal property and certain enumerated services. The tax is imposed on the purchaser but collected and remitted by the dealer. Local jurisdictions may impose additional sales taxes at the county and city levels. A dealer is any person who sells tangible personal property at retail, offers it for sale at retail, or has it in possession for sale at retail, use, consumption, distribution, or storage for use or consumption in Georgia.

Sales tax becomes due when a dealer makes a retail sale in Georgia. Use tax applies when a purchaser acquires taxable goods or services without paying tax at the point of sale, or when non-exempt items are brought into Georgia from out of state for use, consumption, distribution, or storage.

Source: Georgia DOR – What is Subject to Sales and Use Tax?

Georgia imposes a state sales and use tax at a rate of 4 percent. This rate applies statewide to retail sales of tangible personal property and certain enumerated services. The state rate is separate from local sales taxes imposed by counties and municipalities; the combined state and local rates vary by jurisdiction. Every purchaser of tangible personal property at retail in Georgia is liable for tax at the rate of 4 percent of the sales price, and retailers are required to collect and remit this tax.

The Georgia Department of Revenue publishes quarterly rate charts reflecting current combined state and local rates. The chart effective April 1, 2026 through June 30, 2026 confirms the 4 percent state rate. Rate changes are limited by statute to the first day of each calendar quarter.

Source: Georgia DOR Sales and Use Tax Rate Chart (Effective April 1, 2026 through June 30, 2026) | Georgia DOR Tax Rates Page

Georgia requires remote sellers to register and collect sales tax if they exceed $100,000 in gross revenue from retail sales delivered into Georgia OR 200 or more separate retail transactions in the current or previous calendar year. Meeting either threshold triggers the collection obligation. Sales made through marketplace facilitators (such as Amazon or eBay) are excluded from a seller's individual threshold calculation. The current thresholds became effective January 1, 2020, lowering the prior $250,000 threshold.

Source: Georgia DOR – Out-of-State Sellers | Policy Bulletin SUT-2019-02

Georgia requires a marketplace facilitator to collect and remit state and local sales tax on facilitated retail sales sourced to Georgia if the total value of its taxable retail sales sourced to Georgia — combined across all marketplace sellers and the facilitator itself — equals or exceeds $100,000 in the previous or current calendar year. The facilitator is treated as the dealer and retailer for each facilitated sale. Marketplace sellers are relieved of the obligation to collect tax on sales for which the facilitator is liable. This requirement became effective April 1, 2020.

Source: Georgia DOR – Marketplace Facilitators | Policy Bulletin SUT-2020-01

Georgia sales and use tax returns are due monthly by the 20th day of the month following the reporting period. New dealers must file monthly for the first six months after registration. After six months, dealers may request quarterly filing if their tax liability averaged less than $200 per month over the prior six months, or annual filing if liability averaged less than $50 per month. When the 20th falls on a weekend or Georgia state holiday, the return is due the next business day.

Source: Georgia DOR – File & Pay | Ga. Comp. R. & Regs. r. 560-12-1-.22

Georgia exempts sales of tangible personal property and services purchased for resale from sales and use tax under O.C.G.A. § 48-8-30. To claim this exemption, a purchaser must provide the seller with a properly completed Form ST-5 Certificate of Exemption. The certificate must state that the property or service is purchased for resale only, and the purchaser must generally hold a valid Georgia sales and use tax number unless the purchaser is one of a limited class of exempt organizations (church, qualifying tax-exempt child caring institution, tax-exempt parent-teacher organization or association, private school grades K-12, nonprofit entity raising funds for a public library, or member councils of the Boy Scouts or Girl Scouts).

Good-faith acceptance standard

A seller who accepts a properly completed exemption certificate in good faith is relieved of the burden of proving that the sale was not subject to tax under O.C.G.A. § 48-8-38(a). The statute places the burden of proving a sale is nontaxable on the seller unless the seller takes a valid certificate in good faith. A properly completed certificate taken in good faith means the seller obtains a certificate that is:

• Fully completed, including the name, address, sales tax number (when required), and signature of the taxpayer • In a form appropriate for the type of exemption claimed • Claiming an exemption that was statutorily available on the date of the transaction in the jurisdiction where the transaction is sourced • Claiming an exemption that could be applicable to the item being purchased • Claiming an exemption that is reasonable for the purchaser's type of business

Resale-only limitation

The tax-free treatment under the resale exemption does not extend to any purchase to be used by the purchaser, including items the purchaser will donate, as specified in O.C.G.A. §§ 48-8-3(15), (39), (41), (56), (59), (71). The certificate relieves the seller from liability only if the property is actually purchased for resale in its original form or as an ingredient or component of a product to be resold.

Certificate validity and retention

Most Georgia exemption certificates, including resale certificates, do not expire and remain valid until revoked in writing by the purchaser. The exception is the Georgia Agricultural Tax Exemption (GATE) certificate, which expires annually. Sellers must secure and maintain one properly completed certificate of exemption from each purchaser making tax-exempt purchases and must be able to produce the certificates during an audit by the Georgia Department of Revenue.

Verification responsibility

Although the statute does not mandate verification of the purchaser's sales tax number, best practice is for sellers to verify the validity of the purchaser's Georgia sales tax ID using the Department of Revenue's online verification tool. Sellers should also evaluate whether the items purchased are consistent with the purchaser's type of business; if a buyer's stated business is a car dealership but the buyer seeks to purchase office supplies tax-free for resale, the seller should investigate further before accepting the certificate. Failure to exercise reasonable diligence may expose the seller to liability for uncollected tax, penalties, and interest in an audit.

Source: Georgia DOR – Nontaxable Sales | Georgia DOR Form ST-5

Georgia applies destination-based sourcing for sales and use tax, effective January 1, 2011, when the state adopted sourcing rules under O.C.G.A. § 48-8-77 to conform with the Streamlined Sales and Use Tax Agreement. Under destination-based sourcing, sellers must collect tax based on the location where the purchaser receives the product, not the seller's location, and must apply the combined state and local rate for the destination jurisdiction.

Sourcing hierarchy for retail sales

Georgia statute establishes a mandatory sourcing waterfall for retail sales (excluding leases and rentals). The sale is sourced in the following order of priority:

1. When the product is received by the purchaser at a business location of the seller in Georgia, the sale is sourced to that business location.

1. When the product is not received at the seller's business location, the sale is sourced to the location where receipt by the purchaser (or the purchaser's donee, designated as such by the purchaser) occurs, including the location indicated by delivery instructions known to the seller.

1. When neither of the above applies, the sale is sourced to the location indicated by an address for the purchaser available from the seller's business records maintained in the ordinary course of business, provided use of this address does not constitute bad faith.

1. When none of the above apply, the sale is sourced to the seller's business location from which the sale was made.

Sellers must apply each tier in sequence and may not skip to a lower tier when information for a higher tier is available.

Local sales tax application

In addition to the 4 percent state sales tax, local jurisdictions in Georgia impose additional sales taxes at the county and municipal levels. Local taxes are authorized under separate Georgia statutes and include the Local Option Sales Tax (LOST), Special Purpose Local Option Sales Tax (SPLOST), Education SPLOST, and Transportation SPLOST. These local taxes are approved by local referendum, imposed for specified time periods, and may expire or be renewed on different schedules.

Because Georgia uses destination-based sourcing and local tax rates vary by jurisdiction, sellers with nexus must determine the correct combined state and local rate for each delivery location in Georgia. The Georgia Department of Revenue provides advance notice of rate changes and limits the effective date of rate changes to the first day of a calendar quarter. The Department publishes a combined state and local rate chart each quarter reflecting current rates.

A seller that sources a sale in good faith according to the statutory sourcing hierarchy and the information available to it is relieved of liability for additional tax if the sourcing determination later proves incorrect, provided the seller did not act in bad faith.

Leases and rentals of tangible personal property

Periodic-payment leases and rentals follow different sourcing rules. The first periodic payment is sourced using the general retail-sale hierarchy above. Subsequent periodic payments are sourced to the primary property location, as indicated by an address for the property provided by the lessee that is available to the lessor. If the lessor does not have an address for the property, the payment is sourced to the lessee's address on file with the lessor. The primary property location is not altered by intermittent use at different locations. Leases and rentals that do not require recurring periodic payments are sourced as a retail sale.

Transportation equipment sourcing

Sales (including leases and rentals) of transportation equipment defined in O.C.G.A. § 48-8-77(b)(4)—including locomotives, railcars, certain heavy trucks and trailers registered under the International Registration Plan, and aircraft operated by air carriers under federal authority—are sourced using the general retail-sale hierarchy, notwithstanding the general exclusion of leases from that tier.

Streamlined Sales Tax compliance provisions

Georgia's membership in the Streamlined Sales and Use Tax Agreement, effective January 1, 2011, established compliance procedures for sellers registered under the Agreement. Registered sellers may file Simplified Electronic Returns. Motor fuel dealers may not file Simplified Electronic Returns. The Department of Revenue administers the sourcing rules in conformity with the Agreement's uniform provisions and provides rate databases to registered sellers.

Source: Georgia DOR Policy Bulletin SUT-2010-10 | Ga. Comp. R. & Regs. r. 560-12-5

Georgia sales and use tax applies to retail sales of tangible personal property and to certain specifically enumerated services. Unlike tangible personal property sales—which are presumed taxable unless an exemption applies—services in Georgia are presumed nontaxable unless the service is specifically designated as taxable in the Georgia Code. The enumeration of taxable services appears in the statutory definition of "retail sale" at O.C.G.A. § 48-8-2(31).

Enumerated taxable services

Georgia law subjects the following categories of services to the 4 percent state sales tax (plus applicable local taxes) when purchased by a consumer for purposes other than resale:

• Rental and leasing of tangible personal property. The lease or rental of tangible personal property is treated as a retail sale and is subject to tax. Rental or lease of real property is not taxable.

• Local telephone service. Sales of local exchange telephone service (excluding coin-operated telephone service) are taxable. The statute specifically lists local telephone service as a taxable retail sale. Telecommunications services that do not meet the definition of "local telephone service" are generally not taxable, and internet access service is not among the enumerated taxable services.

• Utilities. Sales of natural or artificial gas, oil, electricity, and solid fuel are taxable services under the retail sale definition.

• Transient accommodations. Charges for furnishing rooms, lodgings, or accommodations (hotel, motel, inn, tourist camp, tourist cabin, campground, or other similar place) for periods of 90 consecutive days or less are taxable. Accommodations furnished for more than 90 consecutive days are not subject to tax.

• Transportation services. Certain charges for transportation are taxable, subject to specific statutory exemptions.

These categories are enumerated in O.C.G.A. § 48-8-2(31), which defines "retail sale" to include sales of tangible personal property and sales of the enumerated services listed above when sold to any purchaser for purposes other than resale.

Services NOT taxable in Georgia

Georgia law does not impose sales tax on services that are not specifically enumerated in the statute. According to Georgia Department of Revenue guidance, sales of services are not subject to tax unless the service is specifically designated as taxable. Nontaxable services include:

• Professional services (legal, accounting, consulting, engineering, architectural) • Personal services (haircuts, massage, tattooing, body piercing) • Repair and installation services (when separately stated and priced) • Advertising and marketing services • Data processing and information services

Software-as-a-Service and cloud computing

Cloud subscription services that allow customers to access and use vendor software via the internet are not among the enumerated taxable services, according to Georgia Department of Revenue Letter Ruling SUT-2014-01. In that ruling, the Department concluded that cloud subscription services are not subject to Georgia sales and use tax because (1) they are not among the enumerated taxable services, and (2) they do not include the transfer of tangible personal property. This ruling addressed a specific fact pattern involving software delivered electronically without transfer of a tangible medium.

Similarly, the Department ruled in Letter Ruling SUT-2017-04 that software-related services (including hosting services and customization services) are not specifically identified in the Georgia Code as services subject to tax, and therefore charges for such services are not taxable.

Mixed transactions: tangible personal property vs. services

When a transaction involves both tangible personal property and services, the taxability of the entire transaction may depend on whether the primary object of the transaction is the sale of property or the provision of services. Georgia law exempts "professional, insurance, or personal service transactions which involve sales as inconsequential elements for which no separate charges are made" under O.C.G.A. § 48-8-3(22).

Conversely, when services are embedded in the price paid for taxable tangible personal property and are not separately stated and separately priced, those services become part of the taxable sales price. The Georgia Department of Revenue has stated that separately listing services on an invoice without separately pricing them does not remove the embedded service charges from the taxable base; the charges must be both separately stated and separately priced to qualify for nontaxable treatment.

Fabrication labor

When a seller fabricates, assembles, or manufactures tangible personal property for a customer and transfers title to the finished product, the labor charges for fabrication are part of the taxable sales price even if separately stated. Fabrication labor is considered part of the sale of tangible personal property rather than a nontaxable service. This rule does not apply to contractors who incorporate materials into real property under an installation or construction contract, where the contractor is treated as the consumer of the materials.

Burden of proof

The burden of proving that a sale is nontaxable rests on the seller unless the seller takes a valid exemption certificate or resale certificate from the purchaser. When a seller claims that a charge is for a nontaxable service, the seller must be able to document the nature of the service and establish that it falls outside the enumerated taxable services.

Source: Georgia DOR Letter Ruling SUT-2014-01 | Georgia DOR Letter Ruling SUT-2017-04 | Georgia DOR Letter Ruling SUT-2014-13 | Georgia DOR – What is Subject to Sales and Use Tax?

Georgia imposes separate penalties for late filing and late payment of sales and use tax returns, along with monthly interest on unpaid tax. These penalties and interest accrue in addition to the underlying tax liability and can be assessed simultaneously. The combined total of the late filing penalty and the late payment penalty cannot exceed the greater of $25 or 25 percent of the tax due on the return due date.

Late filing penalty

A dealer who fails to file a sales and use tax return by the due date is subject to a late filing penalty equal to the greater of $5 or 5 percent of the tax due. An additional penalty of 5 percent is assessed for each additional month or fraction of a month the return remains unfiled, subject to the combined cap described above.

Late payment penalty

A dealer who fails to pay the full amount of sales and use tax by the due date is subject to a late payment penalty equal to the greater of $5 or 5 percent of the unpaid tax. This penalty continues to accrue for each month or fraction of a month the tax remains unpaid, subject to the combined cap.

Penalty cap

The combined total of the late filing penalty and the late payment penalty cannot exceed the greater of $25 or 25 percent of the tax due on the return due date. This cap applies separately to each return period.

Interest on past-due tax

Interest on past-due sales and use tax accrues monthly from the date the tax is due until the date the tax is paid. Under O.C.G.A. § 48-2-35, interest accruing for months prior to July 1, 2016 accrued at a rate of 12 percent annually (1 percent per month). Interest accruing beginning July 1, 2016 accrues at an annual rate equal to the Federal Reserve prime rate plus 3 percent. The Department reviews and may adjust this variable interest rate each January. Interest is separate from and in addition to penalties.

Electronic filing and payment requirement

Any taxpayer who owes more than $500 in sales and use tax on any return must file all associated returns and remit all tax payments electronically. Under O.C.G.A. § 48-2-32(f) and Ga. Comp. R. & Regs. r. 560-3-2-.26, failure to file electronically when required results in a penalty equal to the greater of $25 or 5 percent of the tax due, and failure to pay electronically when required results in a 10 percent penalty.

Penalty waiver

The Department of Revenue may waive penalties in whole or in part if it determines that reasonable cause exists. Under O.C.G.A. § 48-2-43, reasonable cause may exist where the failure to comply with tax requirements was not the result of purposeful disregard of those requirements. The Department evaluates each waiver request on its own merits, taking into account documentation provided and the taxpayer's tax compliance history. Taxpayers may request a penalty waiver through the Georgia Tax Center.

Source: Georgia DOR – Penalty and Interest Rates

Direct answer Georgia’s sales and use tax statute of limitations for assessment is generally three years from the filing of a return or the due date, whichever is later, as set forth at O.C.G.A. § 48-2-49. There is no specific "substantial omission" rule (such as the income tax law’s six-year period for omission of gross income over 25%) that applies to sales and use tax assessments. The Department of Revenue and the Georgia statutes do not reference a 25% omission threshold or a six-year period for sales and use tax. Unlimited assessment applies only in cases of fraud, false return, or failure to file.

Why The three-year assessment limitation for most Georgia taxes, including sales and use tax, is found in O.C.G.A. § 48-2-49(b), with unlimited assessment in cases of no return or fraudulent returns under subsection (c). The income tax-specific six-year substantial omission rule, tied to omission of 25% or more of gross income, has no parallel in the sales and use tax context. O.C.G.A. § 48-8-64 incorporates the limitation period from § 48-2-49 for sales and use tax. No statute, regulation, or published Department guidance applies the substantial omission/six-year extension to sales and use tax. The Department’s official FAQ on statute of limitations addresses the six-year rule only for income tax and confirms the absence of an analogous rule for sales and use tax.

Source support

• O.C.G.A. § 48-2-49 (three-year rule; unlimited for fraud/failure to file)
• O.C.G.A. § 48-8-64 (incorporates § 48-2-49 rules for sales and use tax)
• Georgia DOR Statute of Limitations FAQ (six-year/substantial omission rule confined to income tax)

Caution / review status Not yet human confirmed — All points are supported by statute or published DOR guidance but should be confirmed against any unpublished Department audit manuals or administrative interpretations not currently available.

Source: O.C.G.A. § 48-2-49 (Georgia Code) | O.C.G.A. § 48-8-64 | Georgia DOR Statute of Limitations FAQ

Georgia exempts sales and use tax on purchases of machinery, equipment, industrial materials, packaging supplies, and energy necessary and integral to manufacturing tangible personal property at a qualified plant in the state. The primary authority is O.C.G.A. § 48-8-3.2, implemented by Ga. Comp. R. & Regs. r. 560-12-2-.62.

Material update – 2025 sunset extension for concrete equipment parts In 2025, HB 153 (Act 80) amended O.C.G.A. § 48-8-3.2 to extend the sunset for the exemption on "maintenance and replacement parts used in the manufacture of concrete at a fixed or mobile ready-mix concrete plant" from June 30, 2026, to June 30, 2031. This is a targeted extension for this narrow equipment category. All other manufacturing machinery, equipment, and materials exemptions remain as previously described under the statute.

Machinery and equipment exemption Machinery or equipment is exempt if necessary and integral to manufacturing tangible personal property. Regulation 560-12-2-.62 details qualifying equipment—including, for example, equipment for controlling, regulating, heating/cooling, generating, testing quality, maintenance, cleaning, safety, and conditioning air or water for manufacturing use.

Industrial materials and packaging supplies Exempt materials must be incorporated into, or applied to, tangible personal property being manufactured, or must directly contact such property in the process. Packaging supplies used for shipment or sale are also exempt; materials at retail for consumer use are not.

Repair and replacement parts Repair/replacement parts for exempt machinery or equipment retain exemption status (now including the 2031 sunset for qualifying concrete-mixing plant equipment noted above under the 2025 update).

Energy used in manufacturing Energy integral to manufacturing at a Georgia plant is exempt from state and most local tax, but NOT from sales tax for educational purposes. See section 'Manufacturing energy exemption — local tax exclusions as of 2026' for local limitations.

Definition and substantial purpose test "Manufacturing" begins when materials enter the plant and ends when packaging is complete and goods are ready for sale or shipment. The exemption applies to dual-use machinery/equipment if its substantial purpose (more than 1/3 of use) is a qualifying manufacturing use.

Documentation Purchasers must present the seller with a complete Georgia Form ST-5 or a direct pay permit to claim the exemption. If exemption proof wasn't provided upfront and tax was paid, purchasers may seek a refund from the Commissioner.

Effective dates

• Machinery/equipment, materials, packaging supplies: January 1, 2013
• Energy exemption: phased in 2013–2016
• Concrete equipment replacement parts: sunset now June 30, 2031 (extended from the previous 2026 date)

Source: O.C.G.A. § 48-8-3.2 (Georgia Code) | Ga. Comp. R. & Regs. r. 560-12-2-.62 | 2025 Georgia DOR Legislative Summary

Georgia’s manufacturing energy exemption, found at O.C.G.A. § 48-8-3.2, exempts energy used directly and integrally in manufacturing from both state and most local sales and use taxes. However, as of June 2026, the exemption does not apply to local sales and use taxes for educational purposes (commonly known as E-SPLOST or Education Special Purpose Local Option Sales Tax), which are imposed pursuant to Ga. Const. art. VIII, § VI, para. IV and local constitutional amendments. These educational-purpose levies remain taxable for manufacturers purchasing energy for industrial use.

Scope of local exclusion — statutory and regulatory confirmation

• O.C.G.A. § 48-8-3.2(b) establishes the exemption for manufacturing energy but explicitly states in § 48-8-3.2(b)(2) that "the exemption shall not apply to any sales and use tax for educational purposes authorized by local constitutional amendment."
• Ga. Comp. R. & Regs. r. 560-12-2-.64(4)(b) further specifies that the exemption “does not apply to local sales and use taxes for educational purposes, but does apply to the Special District Transportation Sales and Use Tax and Special District Mass Transportation Sales and Use Taxes.”

Other local sales/use taxes — included in the exemption

• All other standard local sales and use taxes (such as LOST and general SPLOST), except those for educational purposes, are covered by the exemption for manufacturing energy use. T-SPLOST and Mass Transit SPLOST are also not imposed on qualifying manufacturing energy purchases, as confirmed in Ga. Comp. R. & Regs. r. 560-12-2-.64(4)(b).

Recent history and confirmation as of 2026

• Review of O.C.G.A. § 48-8-3.2, Ga. Comp. R. & Regs. r. 560-12-2-.64, and the latest available DOR published guidance and rate charts as of June 2026 reveals no changes to the local exclusion carve-out or the application of the exemption since 2022. The Department's rate charts and instructional publications continue to reflect that educational-purpose local taxes remain imposed on manufacturing energy, while other local option sales taxes, except as described above, do not apply.

Summary of local taxes from which the manufacturing energy exemption excludes energy purchases:

• ESPLOST (Educational SPLOST)
• Other local sales/use taxes for education as authorized by constitutional amendment

Local taxes from which manufacturers are exempt on qualifying energy purchases:

• State sales and use tax
• General LOST (Local Option Sales Tax) and SPLOST (Special Purpose Local Option Sales Tax), except when dedicated to education
• Special District T-SPLOST and Mass Transit SPLOST

Source: O.C.G.A. § 48-8-3.2 | Ga. Comp. R. & Regs. r. 560-12-2-.64

Statutory minimum advance notice for local rate changes Georgia law requires a minimum advance notice period before local sales and use tax rate changes can take effect. Under O.C.G.A. § 48-8-69, a local sales or use tax rate change (including both increases and decreases) imposed by a county or municipality may only become effective on the first day of a calendar quarter, and only after a minimum of 60 days’ advance notice to retailers. Sellers must be notified by the Department of Revenue (DOR), which publishes quarterly tax rate charts reflecting all upcoming changes. The statute also provides a 120-day minimum notice requirement for rate changes affecting mail-order, telephone, or catalog sales, reflecting Georgia’s commitment to compliance with the Streamlined Sales and Use Tax Agreement (SSUTA).

Effective date determination All local sales and use tax rate changes are limited to the first day of a calendar quarter (January 1, April 1, July 1, or October 1). Rate changes or new local taxes implemented on other dates are not valid for collection or remittance. The 60-day advance notice standard applies to changes in boundaries of taxing jurisdictions as well. The DOR’s guidance in Policy Bulletin SUT-2010-10 confirms these restrictions, noting that the Department will provide the required notice for all local rate changes and seek to provide as much advance warning as feasible to affected sellers.

Transactions spanning a rate change (straddle transactions) No Georgia statute, regulation, or published DOR guidance specifically addresses how to handle sales transactions (e.g., delivery orders, layaway, or advance payment situations) that are invoiced before but delivered or completed after the effective date of a local rate change. The statutory and regulatory scheme is silent as to proration or special transition rules for such scenarios at the local level; unless otherwise notified, the rate in effect at the time and place of delivery or transfer of possession should apply under Georgia’s general sourcing rules.

Summary

• Local sales/use tax rate changes: effective only on the first day of a calendar quarter.
• Minimum advance notice to sellers: 60 days (with 120 days for mail/catalog/telephone sales) under O.C.G.A. § 48-8-69.
• DOR provides notice via quarterly published rate charts and bulletins.
• No DOR guidance on straddle/overlapping transactions has been published as of 2026-06-16. Sellers should apply the rate in effect at the time and place of transaction completion or delivery.

Source: O.C.G.A. § 48-8-69 | Georgia DOR Policy Bulletin SUT-2010-10

Direct answer As of May 6, 2025, Georgia imposes sales and use tax on sales of most electronically delivered digital goods—such as e-books, digital music, and video downloads—when sold to an end user for permanent use and not conditioned on continued payment. This includes specified digital products, other digital goods, and digital codes delivered electronically, regardless of whether the purchaser receives tangible personal property. These transactions are taxed in the same manner as retail sales of tangible personal property.

Why The General Assembly amended O.C.G.A. § 48-8-30(a)(2) to include sales of “specified digital products, other digital goods, or digital codes” to end users, provided the right to use is permanent and not subscription-based. Georgia Regulation 560-12-2-.118, effective May 6, 2025, offers further definition: “specified digital products” covers digital books (e-books), digital audio (including music), and audiovisual works (such as video downloads) delivered electronically. The regulation further clarifies that SaaS and certain subscription-based streaming services where the consumer does not receive a permanent right to the product remain nontaxable, but a one-time purchase for perpetual use (download or digital code) is taxable.

Georgia’s approach aligns the sales and use tax treatment of qualifying digital goods with the treatment of tangible personal property, responding to the broadening of retail commerce and the shift to electronic delivery.

Source support

• O.C.G.A. § 48-8-30(a)(2): statutory inclusion of digital goods
• Ga. Comp. R. & Regs. r. 560-12-2-.118: regulatory definitions and scope, effective 05/06/2025

Caution / review status Not yet human confirmed. The scope above is based strictly on the current statutory text and regulation as published by Georgia DOR as of June 2026. Practitioners should confirm nuances for specific digital products (e.g., mixed-use licenses or bundled transactions).

Source: O.C.G.A. § 48-8-30(a)(2) | Ga. Comp. R. & Regs. r. 560-12-2-.118

Direct answer Georgia sales and use tax does not apply to most subscription-based streaming services (such as Netflix or Spotify Premium) or to digital goods supplied under a time-limited or revocable license, as of June 2026. Sales tax applies only to sales of specified digital products, other digital goods, or digital codes when sold for permanent use—not for access conditioned on ongoing payments or for limited-time rights. Subscription streaming (where the user does not acquire a permanent download or perpetual license) is excluded from Georgia sales and use tax.

Why O.C.G.A. § 48-8-30(a)(2) and Ga. Comp. R. & Regs. r. 560-12-2-.118 explicitly confine the application of sales tax to digital goods and codes sold for permanent, non-revocable use. The regulation clarifies that "specified digital products"—including e-books, music, and video—are taxable only if the end user receives a permanent right to use, not a subscription, rental, or time-limited access. Both the statute and the regulation exclude digital goods or content delivered via a streaming model or furnished under a revocable, subscription, or rental license. The Department of Revenue guidance (May 2025–June 2026) and the regulatory definitions confirm Georgia’s policy against taxing recurring service/platform access as a retail sale of property.

• Subscription streaming services: Nontaxable, as only a temporary or revocable license is granted; the purchaser does not obtain a tangible or permanent digital product.
• Time-limited or revocable digital licenses: Nontaxable, provided the transaction does not confer a permanent, non-expiring right of use or ownership.
• Permanent downloads or perpetual licenses: Taxable under O.C.G.A. § 48-8-30(a)(2) if the sale results in an everlasting right to possess and use the digital content.

Supporting authority and DOR clarification

• O.C.G.A. § 48-8-30(a)(2): Limits taxation to digital goods sold for permanent use.
• Ga. Comp. R. & Regs. r. 560-12-2-.118(2)(a)–(b), (3): Defines and distinguishes taxable permanent transactions from nontaxable subscriptions.
• Georgia DOR, "What is Subject to Sales and Use Tax?" guidance page (current as of June 2026), which repeats the permanent-use limitation for digital products and expressly excludes streaming and time-limited access models from tax.

Caution / review status Not yet human confirmed. Core rules above are taken from statute and published regulatory authority as of June 2026. If a subscription or digital access bundle includes separate charges for permanent downloads, only the permanent-use portion is generally taxable; mixed bundles may require further review.

Source: O.C.G.A. § 48-8-30(a)(2) | Ga. Comp. R. & Regs. r. 560-12-2-.118 | Georgia DOR – What is Subject to Sales and Use Tax?

Direct rule for facilitators As of June 2026, Georgia statutes and published Department of Revenue (DOR) policy require marketplace facilitators to collect and remit sales tax on all retail sales facilitated into Georgia, including B2B transactions, if the collective total of sales sourced to Georgia meets or exceeds the statutory threshold (currently $100,000 in sales or 200 transactions, O.C.G.A. § 48-8-2(8)(M.3)). The facilitator is treated as the dealer and is liable for the tax unless an exemption applies to the transaction.

Exemption certificates — DOR authority as of June 2026 When a purchaser claims a statutory exemption (including for resale), Georgia law generally requires the seller to obtain a properly completed exemption certificate (e.g., Form ST-5), in good faith, to be relieved of sales tax liability. The documentation standard is described in O.C.G.A. § 48-8-38 and DOR bulletins, but these speak primarily to direct sellers, not explicitly to marketplace facilitators. The burden shifts to the seller (here, the facilitator) to prove the exemption if audited. For drop shipments, Georgia Policy Statement (1995-12-07) and published DOR guidance allow the acceptance of a home-state or multi-jurisdictional resale certificate, provided the purchaser is properly registered elsewhere and the exemption would apply if the purchaser were registered in Georgia.

Gap in marketplace-specific DOR guidance As of June 2026, Georgia DOR has not published marketplace-facilitator-specific documentation rules for exemption certificates in B2B transactions (such as resale through a marketplace or third-party drop shipment via the facilitator). There is no Georgia primary authority confirming: • Whether facilitators may accept resale certificates from out-of-state purchasers in the same manner as drop shippers; • The required form, retention, or digital storage practices for certificates accepted by facilitators (vs. direct sellers); • Any safe harbor for good-faith error by facilitators parallel to the seller rules in O.C.G.A. § 48-8-38 or Policy Statement 1995-12-07.

Practical implications Unless and until DOR issues further marketplace-specific guidance, facilitators should closely follow the established exemption certificate procedures for direct sellers and drop shippers as a best practice, including the use of Form ST-5 or a valid multi-jurisdictional certificate. Absent published authority, it is unclear whether the Department would accept contemporaneously-collected B2B certificates from marketplace facilitators as full relief from collection liability for the facilitator, especially in varied marketplace platform models with multiple parties.

Authority and review status

• O.C.G.A. § 48-8-2(8)(M.3) (marketplace collection obligation)
• O.C.G.A. § 48-8-38 (exemption certificate requirement for relief)
• Georgia DOR Policy Statement 1995-12-07 (drop shipment)
• No DOR bulletin, taxability matrix, or ruling addresses B2B marketplace documentation for exemption as of June 2026.

Source: O.C.G.A. § 48-8-2(8)(M.3) | O.C.G.A. § 48-8-38 | Georgia DOR Policy Statement 1995-12-07

Editor’s note, June 2026: The Georgia DOR Policy Statement 1995-12-07 link was updated to a new working location. No substantive guidance changes were identified in the statutes, regulations, or policy bulletins since last review. All practitioner advice and legal content remain accurate.

Georgia provides liability relief to sellers who rely in good faith on Department of Revenue (DOR)-certified tax rate databases and rate tables, but only to the extent required by its membership in the Streamlined Sales and Use Tax Agreement (SSUTA). Under Section 306 of the SSUTA, a seller or certified service provider (CSP) who properly uses a rate database or rate table published or certified by the Georgia DOR is relieved from liability in the event of an under-collected local sales or use tax caused by an error or omission in that database or table. This safe harbor only applies when the seller or CSP uses the most current DOR-supplied data, and not for errors arising from use of non-certified third-party software, failure to update, or bad faith use.

No broader Georgia statutory or regulatory safe harbor No Georgia statute, regulation, or DOR bulletin as of July 1, 2026 independently expands or narrows this safe harbor beyond the text of SSUTA Section 306. The Georgia DOR publishes the full SST Agreement as an authority document, and its state tax guidance materials do not offer additional explicit protection. There is no published Georgia DOR guidance directly confirming administrative practice regarding audit relief or documentation standards for this safe harbor; the only primary reference is the published SST Agreement itself as posted by the Department (now at Georgia DOR Streamlined Sales Tax page).

Scope and requirements of the safe harbor

• Protection is available only for errors in the DOR’s certified electronic rate/boundary database or official rate tables.
• Relief is NOT provided for mistakes resulting from failure to use the most recent update, non-certified or third-party vendor databases, or misapplication of jurisdictional boundaries.
• Relief requires the seller or CSP to document use of the official DOR-published database or table and that the under-collection was not due to negligence or bad faith.

Summary

• A seller or CSP who exclusively relies on the Georgia DOR’s certified electronic tax rate database or official rate tables, and uses them in good faith and as updated, is relieved of additional tax, penalty, and interest in the event of a rate assignment or sourcing error attributable to a DOR/database error, as required by Section 306 of the SSUTA. No Georgia-specific statutory or published administrative law broadens or restricts this relief beyond the SST-mandated scope as of this writing.

Source: Streamlined Sales and Use Tax Agreement, Section 306 (Georgia DOR publication)