Georgia Provides Guidance on Sales Tax Obligations for Certain Remote Sellers

The Georgia Department of Revenue issued a guidance on remote sellers’ impending sales tax obligations beginning January 1, 2019.  Similar to several states, following the Supreme Court’s Wayfair ruling, Georgia has enacted economic nexus provisions applicable to certain remote sellers.  Effective January 1, 2019, certain remote sellers must either remit Georgia sales tax on their taxable sales of tangible personal property delivered into the state or comply with applicable notice and reporting requirements.

Remote sellers subject to these requirements include those who (1) had gross revenue exceeding $250,000 in the previous or current calendar year from retail sales of tangible personal property delivered electronically or physically to a location in Georgia, to be used, consumed, distributed, or stored for use or consumption in the state; or (2) conducted 200 or more separate retail sales of tangible personal property in the previous or current year, delivered electronically or physically to a location in Georgia that are used, consumed, distributed, or stored for use or consumption in the state.

Georgia does allow an alternative to the collection and remittance of state sales tax if a remote seller meets one of the thresholds.  Instead, a qualified remote seller must notify each potential purchaser immediately prior to the completion of each retail sale transaction with the following statement: “Sales or use tax may be due to the State of Georgia on this purchase.  Georgia law requires certain consumers to file a sales and use tax return remitting any unpaid taxes due to the State of Georgia.”  Furthermore, remote sellers, on or before January 31, 2020, and each subsequent year, must send a sales and use tax statement to each purchaser with more than $500.00 or more sales during the prior calendar year; and file a copy of each sales and use tax statement with Georgia.  A failure to adhere to these requirements could result in a $5.00 penalty for each notice not provided; a $10.00 penalty for each failure to send a sales and use statement; and a $10.000 penalty for each failure to file a copy of a sales and use tax statement with the state.

If you are a remote seller and you conduct business in Georgia, this may affect you.  To register to pay tax, you may visit the Georgia Tax Center Website.  If you would like to apply for a voluntary disclosure you can apply using the Voluntary Disclosure Application.  A qualified tax attorney can assist with the execution of the application and potential questions or concerns that may arise in the process.

Jeanette Moffa is an attorney who concentrates on state and local taxes at Moffa, Sutton, & Donnini, P.A. She is also an adjunct professor and assistant editor to the American Bar Association’s The Sales and Use Tax Deskbook. For more information please call us at 888-966-8216.