Sales Tax APIThe same engine Zamp customers use.If you find Georgia sales tax rules confusing or you’re not sure about when to file — this guide is all you need.
We’ll walk you through how to figure out sales tax rates for every city in Georgia.
We’ll also answer some pressing questions, such as the best way to handle sales tax collection in Georgia and how to collect it.
We’ll also show you an excellent tool for streamlined sales tax, keeping you compliant at every step of the sales tax process.
Collecting Georgia Sales Tax from Customers
Here are the answers to some questions you may have on state tax collection:
Do I Have to Collect Georgia Sales Tax from Customers?
Retailers are called ‘dealers’ in Georgia. You need to meet these two requirements to collect state sales tax in Georgia:
- You have a sales tax nexus in Georgia
- You sell taxable products or services in Georgia
What Creates a Sales Tax Nexus in Georgia?
Dealers who meet these criteria will have a sales tax nexus in Georgia:
- Physical Nexus: Businesses having an office, warehouse, or other place of business.
- Economic Nexus: Businesses having gross sales exceeding $100,000 or 200 or more retail transactions in the state in the previous or current calendar year.
- Trade Shows: Businesses who participate in trade shows for more than 5 days in a period of 12 months and have sales of more than $100,000.
- Employee Location: Businesses with employees, contractors, salespeople, installers, other personnel, or a third-party affiliate in the state.
Do I Have to Collect Sales Tax from Georgia Customers if I Sell on Amazon, Walmart, Ebay, or Etsy?
No.
Georgia has a marketplace facilitator law, which means that marketplaces like Walmart or Amazon are required to collect sales tax on behalf of 3rd party sellers on their platforms.
Remember, if you have a sales tax nexus in Georgia, you’re still required to collect sales tax on your other non-marketplace Georgia sales.
Taxable Products in Georgia
The retail sale of most types of tangible personal property is taxable in Georgia.
However, it doesn’t tax items like SaaS products, production machinery, and more.
Additionally, items like food and groceries enjoy state sales tax exemption but can be subject to local sales tax.
Let’s take a closer look at how products are taxed in Georgia.
Are Groceries Taxable in Georgia?
Groceries are non-taxable at the state level in Georgia, but the state allows localities (cities, counties, etc.) to apply their sales tax rate to groceries.
Is Clothing Taxable in Georgia?
Yes, clothing is subject to Georgia sales tax.
Are Digital Products Taxable in Georgia?
No, digital goods such as e-books or movies purchased online are not subject to Georgia sales tax.
Is Software-as-a-Service (SaaS) Taxable in Georgia?
No, SaaS is non-taxable in Georgia.
Are Services Taxable in Georgia?
Most services are non-taxable in Georgia. However, the following services are taxable:
- Accommodations
- Admissions
- Participation in games and amusement activities
- Taxis, limos, and other private in-state transportation for individuals
Tax-Exempt Items
A few items that enjoy tax exemption in Georgia are:
- Objects of art and of anthropological, archeological, geological, and horticultural value, as well as zoological objects or similar tangible personal property.
- Sales of water delivered through water mains, lines, or pipes.
- Sales of tangible personal property manufactured or assembled in Georgia for export.
- Sales or use of prescription drugs that are lawfully dispensable for the treatment of natural persons
- Insulin syringes and blood glucose level measuring strips dispensed without a prescription.
- Rental of videotape or film to persons charging admission fees to view the tape or film.
- Food stamps or WIC coupons are used as the payment method.
Now, you need a sales tax permit to collect sales tax. Let’s discover how you can get one.
How to Register for a Georgia Seller’s Permit
You can register for a Georgia seller’s permit online at the Georgia Department of Revenue.
Learn how to register for a seller’s permit in every US state.
Do I Need a Georgia Sales Tax License if I’m Only a Wholesaler?
Contact the Georgia Department of Revenue to inquire about sales tax registration for wholesalers.
Do I Need a Georgia Seller’s Permit if I Only Sell Temporarily in the State?
Even if you aren’t already registered with the state of Georgia, you should collect sales tax on all sales made at a temporary event (tradeshow, craft fair, etc.)
You can remit the sales tax using Form FS-32 Miscellaneous Sales Event.
How to Collect Sales Tax in Georgia
Georgia is a ‘destination-based’ sales tax sourcing state.
What does this mean?
When you make a taxable sale to a customer in Georgia, you should charge the combined sales tax rate at the buyer’s ship-to address.
For instance, you have a business located in Champaign, Georgia, and sell to a customer in Bowman. Then, you’ll have to charge the customer the Bowman sales tax rate.
Should You Collect Sales Tax on Shipping Charges in Georgia?
Yes. Shipping charges are subject to sales tax in Georgia.
Learn about sales tax on shipping in every US state here.
How to File and Pay Sales Tax in Georgia
When your sales tax filing due date approaches, you can file Georgia sales tax returns in multiple ways:
- File and pay online: File and pay online at the Georgia Tax Center. You are required to file online if you owe more than $500.
- File and pay by mail: Fill out Sales and Use Tax Returns and Addendums (Form ST-3) and mail in your payment.
- Let Zamp handle your Georgia sales tax filing and remittance so you never have to look at a sales tax return again!
Learn how to file and pay sales tax in other US states here.
