Entrepreneurs in Georgia need to have various permits and licenses in place before they open and, often, the sales and use tax permit is included on this list. We reveal what it is, who needs it and why, and how to get it for your business fast.
What Is a Georgia Sales and Use Tax Permit?
This document, also known as the Georgia sales tax certificate, authorizes businesses to act as agents of the state and federal government by collecting sales tax on those items sold that are considered to be tangible. The collected tax is then remitted to state authorities via the filing of yearly tax returns.
Does Your Business Need One?
Figuring out whether your business needs a sales tax permit will require you to know:
- Whether you’re selling tangible personal property or services to Georgia residents that are taxable
- Whether your buyers are required to pay sales tax
- Whether your business has nexus in the state of Georgia
Tangible Personal Property
In Georgia, “tangible personal property” is anything that can be touched, felt, measured, weighed, or seen. However, some services are also considered to be taxable in Georgia. These include :
- Sales of admissions
- Sale of accommodations
- In-state transportation such as limousine and taxi services
Buyers and Sales Tax
Georgia business owners need to be aware of customers considered to be exempt from paying sales tax in the state. These include merchants who purchase goods for the purpose of resale, as well as some non-profit organizations and certain government agencies.
Should a business conduct a transaction with an exempt buyer, they must collect a valid resale or exemption certificate from that buyer.
Nexus refers to the connection between the seller and the state in which they conduct business. In Georgia, nexus is established when:
- It has a store or other kind of physical presence in the state.
- Its representatives or salespeople are present in the state on a regular basis.
Nexus can also be established by businesses not located in the state via affiliate, trade show, and click-through nexus.
What Is a Sales Tax Certificate of Exemption?
A certificate of sales tax exemption is proof that a buyer or seller isn’t required by law to pay sales tax on what they buy or sell. If your business is accepting this certificate from a buyer, it will be your responsibility to ensure the document is valid and has been completed and signed before you accept it.
Required Information for Registration
Registering for a Georgia sales tax certificate will require information, including:
- Your EIN or employer identification number
- Your projected monthly taxable sales
- Products you’ll be selling
- Business name and location
How Georgia Businesses Can Get a Sales Tax Permit
Business owners can request their permit online at the Georgia Tax Center. Once complete and submitted, you’ll receive a confirmation email, and then a hard copy, which will be sent by mail.
However, your application can be rejected if you failed to include any required information, leaving you no choice but to restart the application process and wait until the certificate of registration has been mailed to you a second time. This can cause unexpected delays with the opening of your business.
How to Get Your Georgia Sales Tax Certificate Fast
Missing or erroneous information can cause delays, but FastFilings helps businesses eliminate them. Just send your documentation to us, and we’ll check your application for completion and accuracy before filing directly with the issuing office.
Discover the benefits of choosing FastFilings’ quick and easy process for your business. Visit us online today.