By: Shailesh Patel
What is Subject to Sales Tax in Georgia?
Georgia imposes a 4% sales tax on the retail price of tangible personal property, and certain services like:
- Accommodation, including hotels and motels
- Taxi and limo services
- Admission tickets: movies, theatre, games, amusement, etc.
Most Georgia businesses pay additional county, city, and other sales taxes, depending on where they operate.
What is Use Tax?
Use tax is due on taxable goods and services that were not taxed at the point of sale. It generally applies to tangible personal property purchased at retail outside of Georgia or ordered online. It is the responsibility of customers to report these transactions and pay the appropriate use tax to the Georgia Department of Revenue.
Sales Tax on Motor Vehicles
There is no sales and use tax due on vehicles that are subject to Georgia’s Title Ad Valorem Tax (TAVT). Sales and use tax is due when registering vehicles that are not subject to TAVT or that were purchased from an out of state dealer.
Out of State Sellers
Out of state sellers are required to register, collect, and remit Georgia sales tax when they sell tangible personal property to Georgia consumers for use in the state, and they also meet one of the following conditions in the previous or current year:
- Gross revenue exceeding $100,000, or
- 200 or more sales transactions that are delivered to Georgia consumers for use in the state
Sales made at Georgia conventions or trade shows are also subject to the state’s sales and use tax.
Registration for Sales and Use Tax
All individuals or entities that sell to Georgia customers must register for a sales tax account number, regardless of whether all sales are out of state, online, wholesale, or tax exempt. An owner or officer of the company must provide their social security number and also be responsible for collecting and remitting sales tax. You can submit your registration application online.
Sales Tax Return Filing an Payment Requirements
- Generally, sales tax returns and payment are due on the 20th of each month for the previous month’s transactions.
- Business owners may request quarterly or annual filing if they owe a minimal amount of sales tax.
- If no sales occurred during the month, business owners must still file a zero return to show that they are still in business.
- Sales tax payments can be made via ACH debit with a business checking account.
Sales Tax Record-Keeping
- Business owners should maintain sales related records for at least three years. Such records include sales receipts, purchase invoices, books of accounts, etc.
For help filing accurate and on time sales and use tax for Georgia, contact an experienced Chugh CPAs, LLP tax professional.