Georgia Sales Tax

Georgia has a state sales tax rate of 4% and local rates that vary by jurisdiction. Georgia’s combined state and local sales tax rate can range from 4.00% to 9.00%. Most goods are taxable in the state, but there is a limited list of exemptions. Services are taxable as well, but they have a different set of rules. For example, shipping charges are taxable for e-commerce businesses. Failure to collect and remit sales taxes in Georgia is a serious offense that can result in penalties and interest. Business owners should consult an experienced tax professional before deciding to ignore sales taxes.

Georgia has several annual sales tax holidays, during which certain items are exempt from sales tax. You can find a list of upcoming sales tax holidays on the Georgia Department of Revenue website.

Georgia Sales Tax Registration

Out-of-state sellers must register for Georgia sales tax if they meet a certain threshold for physical or economic nexus in the state. Physical nexus is established by having a store in the state or having employees working there. Economic nexus is created by passing a threshold for total revenue or number of transactions in the state. The Department of Revenue in Georgia offers a guide to help out-of-state sellers understand their obligations. Once sales tax is collected, it must be remitted to the state by a specific deadline.

Georgia Sales Tax Exemption

Most goods are taxable in Georgia, but there are some exemptions. For example, some prescription drugs and manufacturing equipment are exempt from sales tax. Non-prepared food items are also exempt. And businesses that buy from out-of-state vendors with a valid exemption or resale certificate do not have to pay Georgia sales tax on those purchases.

Georgia Sales Tax Exemption Certificate

If your business has operations in Georgia, you may be liable for sales tax if your total annual sales reach the threshold of $100,000 or 200 transactions. For example, if your company participates in Amazon’s Fulfillment by Amazon program and stores products at its fulfillment centers in Georgia, you have triggered sales tax nexus.

Generally, Emory affiliates are exempt from paying sales and use tax in Georgia. You must obtain and maintain a letter of authorization from the Department of Revenue to claim this exemption. To claim this exemption, you must provide proof that the purchases are made for a non-profit purpose.