Do I Have Sales Tax Nexus in Georgia?
- May 5, 2016 | Suzanne Kearns
If you have customers in Georgia, you may have to collect and remit sales tax for the state if you have nexus.
Every state has different rules for what constitutes nexus, and Georgia is no different. Georgia defines those sellers who have nexus as “dealers,” and here is a list of the triggers that will give you nexus in the state and make you a “dealer” in the eyes of the Georgia Department of Revenue.
Storing: Storing, selling, or distributing tangible personal property in the state.
Soliciting: Systematically soliciting consumers in Georgia. This is true unless your only activity in the state is delivering the property via common carrier or by U.S. mail, or if you only advertise or solicit consumers by direct mail, catalogs, periodicals, fliers, print, radio, television, telephone, computer, internet, cable, radio, or other communication systems. In order to clear up this confusing regulation, we spoke to a representative at the Georgia DOR who said if sellers are physically and actively soliciting business while in Georgia or via a representative, it triggers nexus. But if you are simply soliciting business from out of state by one of the above listed exclusions, it does not trigger nexus.
Importing: Importing products into the state that you intend to sell in Georgia.
Renting: Renting or renting out personal property in the State of Georgia.
Maintaining work sites: Maintaining an office, salesroom, distribution center, warehouse, service enterprise, or any other place of business in Georgia.
Manufacturing: Manufacturing products for sale or use in Georgia.
Selling by proxy: Making sales for anyone else in the state. This includes delivering, installing, assembling, or performing maintenance for customers within the state. It also includes allowing your customers to pick up products at another business in Georgia where you’ve delivered them, or any other activity that is associated with establishing and maintaining a business in the state.
Working with affiliates: Working with an affiliate that is a Georgia dealer.
Working through a related agent: Selling tangible personal property by a “related member” that has nexus in the state. This can happen when you sell a similar line of products using the same name as the person, or one that is similar, use the same or similar trademarks, service marks, or trade names, Georgia defines a “related member” as one who is related in some way under the IRS code, such as a stockholder, partner, or a person involved in your corporation.
Paying commissions: Paying a Georgia resident commissions when they refer customers to you via a website, in-person, telemarketing, or by any other means. In order for this to trigger nexus in the state, the gross receipts from these referrals have to be more than $50,000 during the preceding 12 months.
As you can see, Georgia makes it easy for ecommerce sellers to trigger nexus, so if you sell there, be sure to stay up-to-date on their requirements so you’ll always be in compliance.