Overview of Requirements
Beginning April 12, 2005, all vendors entering into a contract exceeding $100,000 with the Georgia Department of Administrative Services or any other state agency must register for sales and use tax regardless of whether the vendor has a physical presence in Georgia.
Definition of State Agency
The term “state agency” refers to:
- Any authority
- Board
- Department
- Instrumentality
- Institution
- Agency
- Other unit of state government
It does not include:
- Any county
- Municipality
- Local or regional governmental authority
(See Georgia Code: O.C.G.A. § 48-8-14)
Vendor Responsibilities
These vendors must:
- Collect and remit tax on all retail sales of goods received in Georgia by the purchaser
- File sales and use tax returns as required by the Act
Applicable Laws:
- O.C.G.A. §§ 48-8-33
- O.C.G.A. § 48-8-49
- O.C.G.A. § 48-8-59
Sales and Use Tax Registration for Convention and Trade Show Sellers
Is Registration Required?
Sales and use tax registration is NOT required for out-of-state sellers engaged solely in convention and trade show activities in Georgia if the following conditions are met:
Conditions for Exemption
- Convention and trade show activities are the seller’s sole physical presence in Georgia.
- The seller, including any representatives (agents, salespersons, canvassers, independent contractors, or solicitors), does not engage in convention and trade show activities in Georgia for more than 5 days during any 12-month period.
- The seller did not derive more than $100,000 of net income from convention and trade show activities in Georgia during the prior calendar year.
Frequently Asked Questions
Who is required to register for sales and use tax in Georgia?
Vendors entering into contracts exceeding $100,000 with the Georgia Department of Administrative Services or any other Georgia state agency must register for sales and use tax, even if they have no physical presence in Georgia.
What is considered a “state agency” under Georgia tax law?
A state agency includes any authority, board, department, instrumentality, institution, agency, or other unit of state government. It does not include counties, municipalities, or local/regional government authorities.
What are the responsibilities of vendors once registered?
Registered vendors must collect and remit sales tax on all retail sales delivered in Georgia and file sales and use tax returns in accordance with the applicable laws.
Are out-of-state convention and trade show sellers required to register?
No, registration is not required if the seller’s only physical presence in Georgia is for convention and trade show activities that meet specific limitations regarding duration and income.
What conditions exempt out-of-state sellers from registration?
The exemption applies if the seller’s activities in Georgia are limited to 5 days or fewer in a 12-month period, are solely for conventions or trade shows, and if the seller earned less than $100,000 in net income from such activities in the prior calendar year.