Sales Tax Guide for Georgia

Sales Tax in Georgia is currently 4%. This can go up to 9% depending on local municipalities. Some may want a higher tax return and this. Sales tax has revenue and provides the business owner taxable services and goods. It is important for business owners to manage taxes and avoid interest payments and penalties.

When is Georgia Sales Tax Collected?

As Georgia is a Streamlined Sales Tax (SST) agreement. Georgia Sales tax depends on how you are selling your goods. It can be automated to make life simple. You have to pay tax only if you have a sales nexus. This means any significant presence in the state. This can be-

  • Office or place of business
  • Goods in a warehouse
  • Have an employee
  • Have independent contractors
  • Economic Nexus
  • Installing or assembling goods
  • Providing services
  • Regular deliveries
  • Stock maintenance

How to Register for Sales Tax?

Any enterprise or entity that conducts business in Georgia will be required to register for certain tax specific permits, identification numbers, and licenses. One can register online here. This is a secure portal by the government. Sellers with tax nexus should apply. It is the legal right of the Department of Revenue to file, collect and pay sales tax. This is important to have a tolerable risk and be a complete professional.

How to Collect Tax if you are Based in Georgia?

Since it is a destination based tax state, Georgia can be taxed on the buyer’s address. You should include-

  • Business name
  • Entity type
  • Description of activities
  • FEIN
  • PTIN
  • Business address
  • Contact information
  • List of offices and the like

What is the Cost of Registering?

The cost of registering is $0. This is under the Georgia Sales and Use Tax Certificate of Registration.

Who is Eligible for Exemptions?

  • Non prepared food items
  • Everyday clothing items
  • Medical supplies
  • Drugs
  • Non profit agencies
  • Religious groups
  • Out of state buyers
  • Government agencies

When is Sales Tax Due?

The department requires filing every 20th of the month. This is following a case of monthly filers. The due date is the last day of the month. If you miss that day, you may have to pay a late filing penalty. This requires evidence of circumstances beyond your control like an accident, act of God or weather. If the filing date is a holiday, you will be required to file on the next business day. The late penalty can be around $5-$25 depending upon various factors.

Procedure to File Sales Tax

  1. Calculate how much you owe
  2. File a sales tax return
  3. Make a payment