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Do You Need to Get a Sales Tax Permit in Georgia? | TaxValet

Written by Jenniffer Oxford | Aug 26, 2024 4:00:00 PM

Quick Answer: You need to get a sales tax permit in Georgia if you meet economic nexus requirements, have a physical presence in the state, or have nexus based on trade show sales. More information is included below. 

For a comprehensive overview of Georgia sales tax, including the latest rules and regulations, visit our Georgia Sales Tax Guide. This resource provides all the information you need to ensure compliance and understand your tax obligations in the state.

 

What is Sales Tax Nexus Anyway?

Your business owes sales tax in any state where it has “sales tax nexus”. In short, if you have sales tax nexus you need to collect and remit sales tax. If you don’t have sales tax nexus, you generally don’t need to get a permit. 

Sales tax nexus is a legal term that means you have crossed a threshold and now have a sales tax collection responsibility in the state. Nexus can be created by having a physical presence, an economic presence, or by other factors.  Nexus rules vary by state and retailers have specific nexus rules based on where they have people, property or inventory.  

 

What Should You Do Once You Determine You Have Sales Tax Nexus?

Once you determine that you have sales tax nexus in Georgia, your next step is to register for a sales tax permit in the state. Check out our blog post on how to get a sales tax permit in Georgia for more information about that process.  If you are not interested in doing the work of getting the permit yourself, TaxValet can handle the permit registration for you with our Sales Tax Permit Registration Service.   

 

 

Common Ways to Have Sales Tax Nexus in Georgia

1. Economic nexus in Georgia

If you made $100,000 of sales or more than 200 transactions in the state of Georgia, then you are required to register for, collect, and pay sales tax to the state. If you meet this threshold, it does not matter if you have a physical presence in Georgia.  Nexus has been created based on your volume of sales. For more information, please see the Georgia PB SUT-2019-02 Remote Sellers PDF.

If you need help determining which states you have crossed economic nexus thresholds, check out our Sales Tax Starter Kit service.

2. Physical presence in Georgia

The following creates physical presence nexus in Georgia. If you have any of the following in Georgia, you will need to get a sales tax permit:

  1. An office or place of business such as a retail store.
  2. A warehouse or inventory stored in the state.
  3. Employees or independent contractors in the state.
  4. Ownership of real or personal property in Georgia.
  5. Delivery of merchandise into Georgia with the seller’s vehicle.

For more information about sales tax nexus, see Georgia HB 1221.

3. Trade shows or conventions in Georgia

Presence at a trade show or convention may create sales tax nexus in Georgia if the following is true:

  1. You derived more than $100,000 in income from sales at the trade show.
  2. Your employees or representatives engaged in trade show activities for more than 5 days in any 12 month period.

For more information, see “Is sales and use tax registration required for out-of-state sellers making sales at a convention or trade show in Georgia?”

Even if you do not meet the above criteria requiring you to get a sales tax permit in Georgia based on your presence at a trade show, you still must collect and remit Georgia sales tax for all sales made at the trade show using the Miscellaneous Sales Event Form

For more information, see “ Are out-of-state sellers making sales at a convention or trade show in Georgia required to collect sales and use tax?

If you need help determining which states you have a physical presence in, check out our Sales Tax Starter Kit service.

Let our team of professionals help you register for sales tax permits.

 

Do You Need a Sales Tax Permit in Georgia If You Only Sell on Marketplaces?

Yes. As of the publication of this blog, Georgia is not a marketplace collection state. Subsequently, Amazon, eBay, and other marketplace facilitators are NOT required to collect or pay sales tax in Georgia on your behalf. Therefore, you, as the seller are responsible for collecting and remitting sales tax due on sales into Georgia if you are required to have a sales tax permit.

If you are an e-commerce seller who is unsure of where you need to get a sales tax permit, check out our Sales Tax Starter Kit service. In fact, if at any point you are stuck and want a team of experts to handle all of this for you, don’t hesitate to contact us.