Georgia Explains Sales Tax for Research Services

A Georgia Department of Revenue letter ruling discusses how sales tax applies to an out-of-state company’s  sales of market research reports and services.

Reports in Tangible Format

The company’s charges for reports were subject to sales tax when the reports were delivered to a Georgia client in a tangible format.

Access to Records Online

However, charges for access to records stored in an online database were not subject to tax. With this service, no transfer of tangible personal property took place.

Itemized Charges for Reports and Custom Services

Further, a taxpayer may itemize charges for custom services and tangible custom reports. If the taxpayer itemizes, it collects tax only on the charges made for:

  • the tangible report; and
  • its delivery.

Letter Ruling LR SUT-2017-11, Georgia Department of Revenue, July 19, 2017, released February 19, 2018, ¶201-167

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