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Is Labor Taxable In Georgia?

Depending on the type of labor that you are providing, you might need to tax the transaction, or maybe a part of it. Make sure to break down the invoice and describe the labor.


Is there sales tax on labor in Georgia? The basis for a taxable sales price for an item sold in Georgia includes the cost of materials used, and the cost of labor. The state separates labor into different categories so let’s just define each one. Repair labor: this is the labor to repair or restore an item to its original form. This is tax exempt when separately stated on an invoice. Installation labor: this is labor used to affix, connect, or make an item ready for use. This is tax exempt when stated separately on an invoice. Fabrication labor: this is labor used to make a new item or change an existing item into a new item. The entire charge is fully taxable whether it is separately stated on an invoice or not. If you have any other questions about labor and its taxability, feel free to give us a phone call. Thanks for watching.

Ansari Law Firm

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