How to Register for Sales Tax in Georgia

Businesses selling tangible personal property or certain services in Georgia must register for sales tax. This process allows businesses to legally collect sales tax from customers on behalf of the Georgia Department of Revenue (DOR). Registering for a sales tax account is required before a business begins operations involving taxable sales, establishing it as an agent for the state in tax collection and remittance.

Determining Your Registration Requirement

The obligation to register for sales tax in Georgia hinges on establishing “nexus,” a significant connection with the state. Nexus can be created through various activities, extending beyond just physical presence. Businesses must assess their activities to determine if they meet the criteria for establishing this connection.

Physical presence in Georgia creates nexus, requiring sales tax registration. This includes maintaining an office, distribution center, salesroom, warehouse, or any other place of business within the state. The regular presence of employees, agents, or representatives, even if temporary, or owning real or personal property like inventory stored in a warehouse, also establishes physical nexus. Storing products in a third-party fulfillment center or attending trade shows where sales are made can trigger this requirement.

Beyond physical presence, Georgia has economic nexus provisions for out-of-state sellers, effective January 1, 2020. A business establishes economic nexus if its gross revenue from retail sales of tangible personal property delivered into Georgia exceeds $100,000, or if it conducts 200 or more separate retail transactions within the state, in the current or previous calendar year.

Furthermore, Georgia’s marketplace facilitator laws, effective April 1, 2020, impact businesses selling through online marketplaces. A marketplace facilitator is required to collect and remit Georgia sales tax on behalf of marketplace sellers if its total taxable retail sales sourced to Georgia, combined across all its marketplace sellers and its own sales, equal or exceed $100,000 in the previous or current calendar year. If a marketplace facilitator is collecting and remitting sales tax, the individual seller may exclude those facilitated sales when determining their own economic nexus threshold.

Information and Documentation for Registration

Before initiating sales tax registration in Georgia, businesses need to compile specific information and documentation. This preparation streamlines the online application and helps ensure accuracy.

Businesses need to provide their legal name and any trade names (DBA). The physical address, and a separate mailing address if different, are also necessary. Businesses must provide their Federal Employer Identification Number (FEIN) or a Social Security Number (SSN) if operating as a sole proprietorship without an FEIN.

Details concerning the business structure (sole proprietorship, partnership, or corporation) are required. The North American Industry Classification System (NAICS) code, which categorizes the business’s primary economic activity, must also be identified. Businesses need to determine the effective date for sales tax collection, typically the date they began or will begin making taxable sales in Georgia.

Projected financial information, including estimated monthly sales and taxable sales, should be prepared. Information about the types of products or services to be sold is also requested. Bank account information, such as the routing and account number, will be needed for setting up future sales tax payments.

Completing Your Online Registration

Once all necessary information and documentation are compiled, sales tax registration in Georgia is completed online through the Georgia Tax Center (GTC). This secure electronic portal is the primary method for businesses to register, file, and manage their state tax obligations.

Access the Georgia Tax Center website and locate the option to “Register a New Georgia Business” or “Sign up.” The system will prompt account creation, involving eligibility review and setting login credentials. It is advisable to use the business account creation option, as individual accounts are typically for personal income tax.

Within the registration application, select “Sales and Use Tax.” The system will present screens for entering previously gathered information, including the business’s legal and trade names, addresses, FEIN or SSN, entity type, NAICS code, and the effective date for sales tax collection.

After inputting all required details, the application usually provides an opportunity to review the entered information for accuracy before submission. Upon submission, the GTC typically provides a confirmation number or temporary account ID immediately. A permanent sales tax account number is often generated and sent via email within 15 to 30 minutes, or a few business days. This registration does not require regular renewal and remains active as long as the business continues without a change in ownership or structure.

Post-Registration Sales Tax Compliance

After registering for a sales tax account in Georgia, businesses assume ongoing compliance responsibilities. These obligations primarily involve understanding filing frequencies, adhering to due dates, and properly remitting collected sales tax to the Georgia Department of Revenue (DOR) through the Georgia Tax Center (GTC).

The DOR assigns a sales tax filing frequency (monthly, quarterly, or annually) based on the business’s estimated sales volume. Larger businesses with higher sales tax liabilities are typically required to file more frequently. For most taxpayers, sales tax returns are due monthly, particularly during the initial six months of registration.

Sales tax returns and payments are due on the 20th day of the month following the reporting period. If the 20th falls on a weekend or holiday, the due date shifts to the next business day. Returns must be filed even if no sales tax was collected or no sales were made during the reporting period.

All sales and use tax returns are filed electronically through the Georgia Tax Center. Electronic filing and payment are mandatory for businesses owing more than $500 in sales and use tax; electronic funds transfer (EFT) is generally the preferred payment method. Payments can also be made via credit or debit card, though credit card payments may incur additional fees. Businesses must maintain sales and use tax records, including sales and purchase records, books of account, and invoices, for at least three years.