Software Maintenance Agreements Taxable At 50% In Georgia

In Georgia, separately-stated charges for software maintenance agreements are taxable at fifty percent of the agreement’s total stated sales price provided such agreements include prewritten software updates, upgrades, or enhancements delivered in a tangible medium and include support services. The dealer may choose to use an alternate percentage if the Department believes it to be based on reasonable accounting methods. (Sec. 560-12-2-.111, Georgia Department of Revenue)

Posted on October 23, 2006