Georgia Economic Sales Tax Nexus

By November 5, 2018Sales Tax

Georgia Economic Sales Tax Nexus

The title of this article suggests one thing – that the traditional “nexus” of physical presence and/or a substantial and continuous contact no longer defines a tax obligation. Having an economic nexus with Georgia requires an out-of-state seller to make gross sales worth $250,000.00 to residents of Georgia.  For example, your principal place of business is Massachusetts, where your brick and mortar building is located, or you are at least registered to do business. You sell $251,000.00 worth of hairspray bottles to residents of Georgia. Congratulations, you know have an economic nexus to the state of Georgia and are required to collect and remit sales tax to the Georgia department of revenue.

The second question is whether services are subject to sales tax. This has always been a crushing question. Generally, services are not subject to sales tax. However, when they are coupled with a tangible item, they are and will be subject to sales tax. The tax is levied on the gross receipt, not the segregated amount of services versus tangible item.

Georgia Economic Sales Tax Nexus

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