Georgia: Sales Tax Handbook
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.
Contents1.) Taxability of Goods and Services
- General Georgia taxability guidelines
- Are services subject to sales tax?
- Is shipping & handling subject to sales tax?
- Are drop shipped items taxable?
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.Top
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.Top
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
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.
|Products on Amazon.com||TAXABLE|
|Food and Meals|
|Grocery Food||EXEMPT *|
|Leases and Rentals|
|Motor Vehicles||TAXABLE *|
|Tangible Media Property||TAXABLE|
|Manufacturing and Machinery|
|Utilities & Fuel||TAXABLE *|
|Medical Goods and Services|
|Medical Devices||EXEMPT *|
|Newspapers and Magazines|
|General Occasional Sales||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 *|
|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 *|
|Vending Machine Sales|
* See notes in category taxability page for details
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