Georgia: Sales Tax Handbook
What constitutes sales tax nexus in Georgia?
One of the more complicated aspects of Georgia sales tax law is sales tax nexus, the determination of whether a particular sale took place within the taxation jurisdiction of Georgia, and is thus subject to state (and possibly local) sales taxes.
If a vendor's transactions are determined to have nexus in Georgia, the vendor must register for a Georgia sales tax license and collect appropriate sales taxes from the buyer for all transactions with nexus in the state. On this page, we have compiled some of the most commonly needed facts about what constitutes sales tax nexus in Georgia.
Sales Tax Nexus in Georgia
According to the law in the state of Georgia, "retailers" and "dealers" who have tax nexus can be defined in several distinct ways. To have tax nexus, the business must meet a minimum of one of the following requirements:
Having an office or any other place of business (including but not limited to sample rooms, warehouses, places of storage, or sales room) within the state, having any representative(employee, agent, salesman, independent contractor,etc.) in the state of Florida, keeping goods in a warehouse within the state's boundaries, the ownership of any real or personal property in Georgia, and the delivery of any merchandise in the state.
For additional details on sales tax nexus law in Georgia, see the nexus information page from the Department of Revenue at http://dor.georgia.gov/tax-registration
Taxation of Internet-Based Sales in Georgia
NOTE: 2018 Supreme Court Ruling Regarding Online Sales Taxes
In the 2018 Supreme Court case South Dakota vs. Wayfair Inc, Et Al., the court overturned a previous ruling that required a merchant to have physical nexus in order for a state to collect sales tax. This means that any state is now free to enforce collection of sales taxes on out-of-state online merchants. The information provided here may be subject to change, and many states are expected to begin collecting online sales taxes following this ruling.
Depending on the situation, Georgia may or may not charge sales tax on Internet-based transactions. In Georgia, the "click-through" nexus provisions apply to all those with sales nexus in the state. As of July 18, 2012, the definition of a "dealer", or an individual who has tax nexus in Georgia, was extended to include any individual who enters an agreement with one individual or multiple individuals who are Georgia residents when the resident or residents, for any sort of pay, based on finalized sales, refers any potential purchaser (directly or indirectly, through a link online, a personal presentation, through the phone, or through any other form of contact) to the dealer, only if the cumulative gross receipts from the sales made by the dealer to Georgia residents who are referred to the dealer by all Georgia residents with this sort of agreement with the dealer is greater than fifty thousand dollars during the previous year.
The nexus status and taxability of Internet-based sales, by vendors and/or consumers within Georgia, have been the subject of hot debate in recent years. You can learn more on our introduction to Internet-based sales taxes.
Does my business have tax nexus in Georgia?
The folks at the sales tax compliance company Avalara are an approved Georgia sales tax partner, and you can use their free Georgia nexus wizard tool to determine whether or not your business has nexus, and is therefore required to pay Georgia sales taxes. If you're interested in automating your sales tax collection and filing process, click here to get more information.
Back to Georgia Sales Tax Handbook Top