2024 Georgia Sales Tax Changes for Photographers
As a photographer who sells digital prints, you must be aware of the recent changes in Georgia's sales tax laws regarding digital prints.
The Backstory
Effective January 1, 2024, the bill mandates that digital products, goods, services, and codes downloaded within Georgia will be subject to Georgia sales and use tax. Notably, this taxation extends beyond the general scope, encompassing the retail sale of specified digital products and what is categorized as "other" digital goods. This means EVERYTHING digital is now taxable in Georgia.
What does this mean?
Plain and simple - Digital photos were not taxable, and beginning 1/1/2024, they are.
What about services?
In Georgia, most services enjoy tax exemption; however, specific categories, including the sale of accommodations, in-state transportation, sales of admissions, and charges for participation in games and amusement activities, are subject to taxation.
Photography services are still exempt from sales tax in Georgia (Unless you bundle it with physical or digital goods - Keep reading)
When do services become taxable?
To elaborate on WHEN SERVICES ARE TAXABLE.
In Georgia, any time you have taxable items (like digital prints or physical prints, albums, frames, etc) on the same invoice as services. The entire invoice is taxable, including the services. Some states will let you separate state lines on the same invoice and have mixed taxable and non-taxable lines, but not Georgies, so the second taxable item is on the invoice. EVERYTHING becomes TAXABLE.
You can avoid this by billing your service or sitting fee on a separate invoice from your digital or physical goods. The services would not be taxable because they are on a separate invoice.
What does all of this mean for me?
Let's break it down into a few scenarios...
You’re a Georgia photographer who only offers services and digital photos, so you have never had to deal with sales tax.
Welcome to the sales tax club!
You will now need to register for sales tax back to 1/1/2024 and ensure you are charging your clients the correct rate. You must file with Georgia online and remit the sales tax. [How to register for sales tax in GA]
You’re a Georgia photographer who offers services and physical prints.
Cool, you should already be registered for sales tax in Georgia now. Just be sure to charge sales tax on digital prints, too. And remember, if your digital or physical prints are on the same invoices as services, then the entire thing is taxable as well.
Want to learn more?
We have a few options.
First, check out our FREE sales tax guide, where we break everything down by state and keep this up to date (this is the literal database we use inside Bastian Accounting for our monthly photographer clients)
Check out Sales Tax 101 for Photographers - This is inside our Financially Focused Photography Education Vault.
Click here to join my free Facebook Community Financially Focused Photographers
Every week, I go live in this community, answering all your tax, bookkeeping, and tax questions!
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