Compilation of Rules and Regulations of the State of Georgia › Department 560 - RULES OF DEPARTMENT OF REVENUE › Chapter 560-12 - SALES AND USE TAX DIVISION › Subject 560-12-2 - SUBSTANTIVE RULES AND REGULATIONS › Rule 560-12-2-.111 - Computer Software and Computer - Related Services

Current through Rules and Regulations filed through June 27, 2024
(1)
Purpose
. This Rule sets
				forth the application of Georgia sales and use tax concerning the sale or use
				of computer software and computer-related services.
(2)
Definitions.
For the
				purposes of this Rule, the following definitions and explanations of terms
				shall apply:
(a) "Application program" means
				a set of statements or instructions that when incorporated in a machine-usable
				medium is capable of causing a machine or device having information processing
				capabilities to indicate, perform, or achieve a particular function, task, or
				result for the end user. Application programs include any other computer
				software that does not qualify under subparagraph (2)(h) or (2)(n).
(b) "Computer" means the components and
				accessories that constitute the physical computer assembly that accepts
				information in digital or similar form and manipulates it for a result based on
				a sequence of instructions. A computer includes but is not limited to these
				components and accessories: a central processing unit, keyboard, console,
				monitor, memory unit, disk drive, tape drive or reader, terminal, printer,
				plotter, modem, document sorter, and optical reader.
(c) "Computer-related services" means
				services including, but not limited to, computer programming, installation,
				time-sharing, consulting, training, data processing, system testing, and
				information retrieval.
(d)
				"Computer software"means any computer data, program or routine, or any set of
				one or more programs or routines, which are used or intended for use to cause
				one or more computers, pieces of computer-related peripheral equipment,
				automatic processing equipment, or any combination thereof, to perform a task
				or set of tasks. Without limiting the generality of the foregoing, the term
				"computer software" shall include operating programs, application programs,
				system programs, and any other subdivisions (such as assemblers, compilers,
				generators, and utility programs).
(e) "Custom computer software" means computer
				software, including custom updates, which is designed and developed by the
				author to the specifications of a specific purchaser. Any subsequent sale of
				custom software to a different purchaser, customer, person, or entity shall be
				deemed the sale of prewritten computer software.
(f) "Delivered electronically" means
				delivered to the purchaser by means other than tangible storage
				media.
(g) "Load and leave" means
				delivery to the purchaser by use of tangible storage media where such tangible
				storage media is not physically transferred to the purchaser.
(h) "Operating program" means a set of
				statements or instructions that when incorporated into a machine or device
				having information processing capabilities is an interface between the computer
				hardware and the application program or system program.
(i) "Prewritten computer software," also
				known as "canned computer software," means computer software that is designed,
				prepared, or held for general distribution or repeated use, or software
				programs developed in-house and subsequently held or offered for repeated sale,
				lease, license, or use.
(j)
				"Software license agreement" means the transfer of possession and the right to
				use computer software for the purpose of reproduction or other use in a
				computer.
(k) "Software maintenance
				agreement" means providing error corrections, fixes, improvements, technical
				support upgrades and updates to purchased or licensed computer software under a
				single agreement.
(l) "Streamlined
				Sales Tax Project" ("SSTP") is an effort created by state governments, with
				input from local governments and the private sector, to simplify and modernize
				sales and use tax collection and administration. The SSTP's proposals include
				tax law simplifications, more efficient administrative procedures, and emerging
				technologies to substantially reduce the burden of tax collection. The SSTP
				will develop measures to design, test and implement a sales and use tax system
				that simplifies sales and use taxes.
(m) "Streamlined Sales and Use Tax Agreement"
				describes the agreement developed by the Streamlined Sales Tax Project, which
				provides for uniform definitions, terms of art, collection and registration
				responsibilities, governing board procedures, and other articles of importance
				related to sales and use tax. These items will provide for simplification and
				uniformity when adopted by the implementing states.
(n) "System program" means a set of
				statements or instructions that interacts with the operating program that is
				developed, licensed, and intended to build, test, manage, or maintain
				application programs.