Georgia Sales Tax on Services, Installation, etc Georgia: Sales Tax Handbook

Georgia:

What purchases are taxable in Georgia?

The taxability of various transactions (like services and shipping) can vary from state to state, as do policies on subjects such as whether excise taxes or installation fees included in the purchase price are also subject sales tax. This reference is here to help answer your questions about what is and is not subject to the Georgia sales tax.

Section 1: Taxability of Goods and Services

What transactions are generally subject to sales tax in Georgia?

In the state of Georgia, sales tax is legally required to be collected from all tangible, physical products being sold to a consumer. Several examples of exceptions to this tax are certain groceries, some medical devices, certain prescription medications, and machinery and chemicals that are used in development and research.

This means that someone in the state of Georgia who sells school supplies would be required to charge sales tax, but an individual who sells grocery products might not be required to charge sales tax.


Are services subject to sales tax in Georgia?

The state of Georgia does not usually collect sales tax from the vast majority of services performed.

This means that people who provide a service like a yoga instructor, carpenter, or plumber does not have to worry about charging sales tax.

You can find a table describing the taxability of common types of services later on this page.

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Are shipping & handling subject to sales tax in Georgia?

The state of Georgia has fairly simple rules when it comes to taxes on shipping. If the item being shipped is considered to be taxable, then the shipping charge is considered to be taxable as well. If the item being shipped is not considered to be taxable, sales tax is not applied to the shipping charge.

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Are drop shipments subject to sales tax in Georgia?

"Drop shipping" refers to the common business practice in which a vendor, often in a different state, makes a sale of a product which is shipped to the end-user by a third party supplier hired by the initial vendor. In Georgia, drop shipments are generally subject to state sales taxes. All exceptions apply

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Section 2: Taxability of Various Items in Georgia

This table shows the taxability of various goods and services in Georgia. If you are interested in the sales tax on vehicle sales, see the car sales tax page instead. Scroll to view the full table, and click any category for more details.

Category Exemption Status
Amazon Purchases
Products on Amazon.com TAXABLE
Clothing
General Clothing TAXABLE
Food and Meals
Catering TAXABLE *
Grocery Food EXEMPT *
Leases and Rentals
Motor Vehicles TAXABLE *
Tangible Media Property TAXABLE
Manufacturing and Machinery
Machinery EXEMPT
Raw Materials EXEMPT
Utilities & Fuel TAXABLE *
Medical Goods and Services
Medical Devices EXEMPT *
Medical Services EXEMPT
Medicines TAXABLE *
Newspapers and Magazines
Newspapers TAXABLE
Periodicals TAXABLE
Occasional Sales
General Occasional Sales EXEMPT *
Motor Vehicles EXEMPT
Optional Maintenance Contracts
General Optional Maintenance Contracts EXEMPT *
Parts Purchased for Use in Performing Service Under Optional Maintenance Contracts TAXABLE
Pollution Control Equipment
General Pollution Control Equipment TAXABLE *
Services
Janitorial Services EXEMPT
Transportation Services TAXABLE *
Software and Digital Products
Canned Software - Delivered on Tangible Media TAXABLE
Canned Software - Downloaded EXEMPT *
Custom Software - Delivered on Tangible Media EXEMPT
Custom Software - Downloaded EXEMPT
Customization of Canned Software TAXABLE *
Digital Products EXEMPT
Trade-Ins
General Trade-Ins EXEMPT
Vending Machine Sales
Food TAXABLE
Merchandise TAXABLE

* See notes in category taxability page for details



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Source: http://www.salestaxhandbook.com/georgia/sales-tax-taxability