If you are planning to start a business, there are several legal forms you will likely need to complete. (See “Basics of Incorporation”, “How to get an EIN” and other articles about starting a business in Georgia). Many new businesses in Georgia are required to procure a sellers permit, something that the Georgia Department of Revenue (GaDOR) calls a “Sales and Use Tax Certificate of Registration.” This article will help you find answers to questions about the sales and use tax certificate and help prepare you to deal directly with GaDOR.
Who Needs a Sales and Use Tax Certificate of Registration?
- Any business entity that sells tangible personal property.
- Any busines that offers for sale or regularly solicits sales of tangible personal property.
- Any business that offers taxable services.
- Any business that contracts to provide services in the State of Georgia.
What is “tangible personal property”?
Tangible personal property is any property that has a physical form, such as electronics, automobiles, etc. This does not include land or buildings; real estate property is dealt with by GaDOR under a different heading. It also does not include documents whose value is not readily redeemable, such as stocks, bonds, liquor licenses, etc.
What are “taxable services”?
In the State of Georgia, like all states, certain services are taxable. The particular services that are taxed in the State of Georgia are:
- Renting or leasing tangible personal property
- Transient accommodations
- Games and Amusements
If your business meets any of these criteria, you will need to apply for a Sales and Use Tax Certificate of Registration with the Georgia Department of Revenue. While this may prove to take some time, there is some good news. Once you receive your Sales and Use Tax Certificate of Registration from GaDOR, it will never need to be renewed (as long as the business has no change in ownership or structure).
A quick note for those who wish to start a business that involves the sale of prepaid wireless devices and service, there is a requirement to collect a charge of 75 cents per transaction and file a prepaid wireless 911 return. More info on this requirement can be on the Georgial Department of Revenue website.
If you are ready to begin, you can register for a State of Georgia Sales and Use Tax Number at the Georgia Tax Center website.
If any questions come up during the registration process you can visit or call the Georgia Department of Revenue’s Savannah Office at:
6606 Abercorn Street, Suite 220
Savannah, GA 31405
As always, if you have any further questions you are always welcome to contact our office for a free initial consultation. We are always happy to provide advice or assistance to all individuals seeking to start a new business.