Georgia Tax Nexus
Businesses with nexus in Georgia are required to register with the Georgia Department of Revenue and to charge, collect, and remit the appropriate tax.
Generally, a business has nexus in Georgia when it has a physical presence there, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives. However, out-of-state sellers can also establish nexus in the ways described below.
Georgia nexus for out-of-state sellers
If your business has ties to businesses in Georgia, including affiliates, it may have nexus. As of October 1, 2012, nexus is presumed when an out-of-state vendor with a related member in Georgia engages in any of the following activities:
- Sells the same or a similar line of products as the out-of-state vendor under the same or similar name
- Uses the same or similar trademark, service mark, or trade names as the out-of-state vendor
- Maintains or utilizes an office, distribution center, salesroom, warehouse, or other place of business (owned by the vendor or any other person other than a common carrier acting in its capacity as such)
- Assembles, delivers, installs, or provides maintenance services for the out-of-state vendor’s Georgia customers
- Facilitates the out-of-state vendor’s delivery of property to Georgia customers (allows products to be picked up at their place of business)
- Conducts any other activities in Georgia that are significantly associated with the out-of-state vendor’s establishment or maintenance of a Georgia market
An out-of-state seller can also establish Georgia nexus through referrals, including online referrals, from in-state entities under an expanded click-through nexus provision that took effect on October 1, 2012. Out-of-state vendors must collect and remit sales and use tax when they earn more than $50,000 of cumulative gross receipts from in-state referrals (in exchange for a consideration) during the preceding 12-month period.
Trade show nexus
Out-of-state sellers that engage in convention and trade show activities in Georgia may establish nexus. The Department of Revenue states that out-of-state sellers are not required to register with the state when all of the following conditions are met:
- The seller’s sole physical presence in Georgia is related to convention and trade show activities
- The seller (including the seller’s agents, canvassers, independent contractors, representatives, salespersons, or solicitors) does not engage in convention and trade show activities in Georgia for more than 5 days during any 12 month period
- The seller did not derive more than $100,000 of net income from convention and trade show activities in Georgia during the prior calendar year
However, even when nexus is not created, out-of-state vendors must apply sales tax to any orders taken or sales made during convention or trade show activities (using form CD-32 Miscellaneous Events for remittance).
See O.C.G.A. § 48-8-2 and O.C.G.A. § 48-8-59; Section 6-1 of House Bill 386 (2012); and the Georgia Department of Revenue, Out-of-State Sellers.