SALT Report 3478 – A Georgia taxpayer, who is a technology service provider, requested a ruling to address the taxability of it’s cloud-based system and services. Customers did not receive any tangible personal property as part of the service and the servers used to run the service are located outside the state of Georgia. The services were accessed via the customer’s own internet or telecommunications connections.
It was concluded that the taxpayer did not owe sales and use tax on their cloud-based system and services because there was no sale of tangible personal property, it did not qualify as a taxable telecommunications service, and the service was not considered to be provided within the state of Georgia.
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