When starting a business in Georgia, there are several registrations to take care of. The most common is the Georgia sales tax license, which is sometimes referred to as a retailer certificate, seller’s permit, sales tax permit, sales and use tax number, or sales tax registration.
Keep reading to learn who needs a sales tax permit, what kinds of products and services are taxable, how to register, and what you need to do for reporting.
Related: Guide to starting a business in Georgia
Who needs a Sales Tax Number in Georgia?
A business must register for a sales tax number in Georgia when:
- A business has sales tax nexus. Nexus means having a physical presence in the state, such as having a physical location like a retail store or office or using a warehouse or fulfillment center to store inventory.
- Selling items at craft shows, fairs, seminars, conventions, etc. in Georgia
- Hiring Georgia employees or sales representatives who work in the state
- An online business located in Georgia is selling taxable products to Georgia residents
- A remote seller sells over $100,000 in physical goods or has over 200 transactions annually to residents in Georgia
What products and services are taxable in Georgia?
Physical Products
There are a few exceptions, but almost all physical products are taxable when sold at retail in Georgia. Common examples include:
- General merchandise like furniture, appliances, and clothing
- Titled or registered items like vehicles
- Manufacturing machinery and equipment
Some medical equipment, prescriptions, and certain machinery & equipment are tax-exempt.
A complete list of sales tax exemptions in Georgia is available from the Department of Revenue.
Digital Products
Digital products are tax-exempt in Georgia.
Services
Most services aren’t taxable in Georgia, however, there are a few exceptions.
- Short-term lodging
- In-state transportation of individuals in taxis, limos, etc.
- Sales of admissions and charges for participation in games and amusement activities
How to register for a sales tax number in Georgia
A sales tax number can be obtained by registering through the Georgia Tax Center (GTC).
Information needed to register includes:
- Type of business entity: sole proprietorship, general partnership, corporation, Limited Liability Company (LLC)
- Business name, address, phone
- Business history (if applicable)
- Employer Identification Number (EIN) from the IRS or owner’s Social Security Number if a sole proprietorship with no employees
- Names and addresses of owners/officers/members
- Description of what products or services are being sold
- Date business activities began or will begin
- Projected monthly sales
- Projected monthly taxable sales
- Employee information
After registering, a Certificate of Registration will be sent and must be conspicuously displayed at the place of business.
Sales tax reporting
How is sales tax collected?
When a business sells a taxable product or service, it charges the customer the appropriate sales tax rate. The company collects this tax and then sends it to the Georgia Department of Revenue.
How much is sales tax in Georgia?
If the purchase is made at a store or in a mobile location, the sales tax rate varies depending on where the sale took place in Georgia. In addition to the statewide tax, cities and municipalities may add additional sales taxes. When shipping in-state, the sales tax is based on the purchaser’s address.
To find the sales tax for your location, see the sales tax rate table from the Georgia Department of Revenue.
In Georgia, sales tax should be added to the cost of shipping retail products.
When are Georgia sales tax returns due?
The Georgia Department of Revenue will determine a filing frequency based on the expected annual sales volume, which will be monthly, quarterly, semiannually, or annually.
The due date for filings (Form ST-3) is the 20th day of the month following the reporting period unless the 20th falls on a weekend or federal holiday, in which case it would move to the next business day.
Even if the business had no sales during the reporting period, a filing indicating no sales is still required.
Georgia Sales Tax Number FAQs
How much does a Georgia sales tax number cost?
There is no cost for a sales tax number in the state of Georgia.
How long does it take to get a Georgia sales tax number?
It normally takes 15 minutes to get a sales tax number.
Do you have to renew your Georgia sales tax number?
The sales tax number is a one-time registration, and no renewals are needed. Be mindful that if any information about the business changes, such as the mailing address, additional locations, or change in ownership, those changes need to be updated with the Department of Revenue.
How do I get a wholesale license in Georgia?
A business can purchase items to resell without paying state sales tax. The tax liability is passed from the distributor to the retailer, who will then charge sales tax to the end-user of the item.
Wholesalers and distributors will require a sales tax number and a Georgia Sales Tax Certificate of Exemption (also referred to as a wholesale license or resale certificate) to document that the items being purchased are for resale.
Is a business license the same thing as a sales tax license?
No – A business license and a sales tax permit serve different purposes and are not the same.
A business license authorizes you to conduct business within a particular locality, ensuring compliance with local regulations. Conversely, a sales tax permit enables your business to legally collect sales tax on sales, which you then remit to the state government.
Generally, businesses require both a license and a permit to operate legally and handle taxes correctly.
If you have questions about the sales tax number, the Georgia Department of Revenue has a guide to sales taxes in Georgia or can be contacted by calling 800 732-8866 or 217 782-3336.
