State Sales Tax Nexus and General Overview

Need to Understand a State's Sales Tax Situation? Here it is...

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Georgia (GA)

GA Sales Tax - Name of Tax and General Application:

Georgia imposes a tax on sales of tangible personal property and certain services at the retail level. This tax is called a "sales tax". Additionally, there is a tax imposed on the use, consumption, distribution or storage of tangible personal property inside Georgia whether purchased inside of Georgia or not. This is called a "use tax" and it does not apply where sales tax has already been paid.

GA Nexus - General Requirements:

The word "nexus" means a link or connection. If you are determined to have nexus to a U.S. state then you are subject to that state's sales and use tax rules and must collect and remit sales tax to the state. This is known as a "filing obligation."

Each state has a different definition of nexus. However, if the answer to any of the following questions is yes, it is likely that a company has nexus as legally defined in most U.S. States.

Does the company own property in the state? Does the company have employees living in the state? Does the company regularly send employees in the state to perform services? Does the company have an agent acting on behalf of the company in the state?

Georgia requires a retailer to collect and pay sales or use tax when making sales of tangible personal property for use, consumption, storage or distribution in the state. A retailer includes those who make retail sales, or who store, use, or consume tangible personal property at any time in the state.

GA Local Tax - Do Localities Impose Tax?

Yes, Georgia imposes local sales tax.

GA Resale Certificate Renewal Agreements:

A resale certificate exempts the seller from tax when the products are being purchased by the purchaser with the intent to resell. The certificate must be signed by the purchaser and indicate the permit number and general description of property being sold.

GA Resale Certificate Renewal Periods

Georgia requires the use of form ST-5, which is valid until revoked.

GA Statute of Limitations

Three years from the date the return was filed. For this purpose, an early return is considered "filed" on the first day prescribed for the filing of the return.