If you are a business owner in the state of Georgia and you plan to buy products with the intention of reselling them, then you will need to obtain a Resale Sales Tax Exemption Certificate. This certificate is also known as a tax-exempt certificate and it must be obtained by the business, that intends to buy products with an intention to re-sell.
Normally reseller’s certificate is valid within the state however there is no clear-cut answer, as a few friendly states do accept certificates from other states, to do business in their own state. So, if you are unsure whether your state will accept a certificate from another state, it is best to contact your local Department of Revenue office for guidance.
If a reseller certificate is submitted by the business, supplier, or the provider of the service or goods, is authorized not the charge any sales tax (except in Texas), and the liability of sales tax, then lies with the re-seller based on the value of the final sale. In most cases though, suppliers will require that businesses have an exemption certificate on file before they agree not to charge sales tax.
There are 2 ways of sharing a reseller’s certificate by the reseller: this can be achieved, either through submitting an existing reseller certificate to the business or, by creating a reseller certificate on third-party platforms such as Avalara, Tax-exempt, etc.
The owners of validated the certificate lie with the supplier and all necessary steps must be undertaken to ensure that the certificate is valid. For example, in Georgia, the threshold for nexus is $100,000 in sales or 200 transactions.
Georgia – https://gtc.dor.ga.gov/_/#2
Sales tax rate – 4.000%
Information required to register for a sales tax permit in the state of Georgia
1) Business name, physical address, contact information, and mailing address
2) Federal Employer Identification Number (FEIN); see instructions for item 8 if you do not have a FEIN
3) Bank routing number and account information if enrolling to file and pay tax electronically
4) Name, Social Security Number* (SSN), driver license number, address, and contact information of owner/sole proprietor, officers,
5) partners, managing members, and/or trustees
6) Dates when business activities began or will begin
7) Description of business activities
8) Employment information (date of hire, number of employees, payroll amounts, payroll agent’s PTIN, if applicable)
A Georgia resale tax exemption certificate allows businesses to buy or rent property or products without having to pay tax. It is good for one year, and businesses must renew it annually in order to continue enjoying the benefits of the exemption.
In order to make a purchase or rental that falls under this category, you must have a resale sales tax exemption certificate. This document is required to make such a purchase or rental, so it’s important to keep it on hand.
When it comes to getting a Georgia resale sales tax exemption certificate, there are a few things that vendors need to know. For starters, the vendor does not need to get one from their purchasers- the invoice should already identify the exempt items. The annual resale certification is only valid for items that are exempt from tax based on their use. That means that if you purchase something for personal use but then later sell it as part of your business, you can use this certificate for those transactions.
An Annual Resale Certificate can be accepted by a selling dealer if it has only one owner and no d/b/a. This type of certificate is valid for any type of transaction (store, e-commerce). In addition, the selling dealer can continue to sell tax-exempt products (for example, on a charge account or cash on delivery basis) to this customer.
The initial certificate will suffice as long as all information is correct. There’s no need for you to send multiple copies. So if you’re looking to get a resale sales tax exemption certificate, make sure to keep these things in mind!
A reseller certificate can be submitted by a business. The supplier or provider of the service/goods is not authorized to charge sales tax. If the final sales exceed $100, the responsibility for sales tax falls on the re-seller. Example – $100 worth of items are sold by business A to business B, and because a reseller certificate was provided by reseller b (2A) no sales tax is charged in this transaction., however, when the reseller will sell the product for say $200 sales tax must be taxed on $200
The owners of validated the certificate lie with the supplier and all necessary steps must be undertaken to ensure that the certificate is valid
Georgia is a state in the Southeastern region of the United States, bordered to the north by Tennessee and North Carolina; to the northeast by South Carolina; to the southeast by the Atlantic Ocean; to the south by Florida; and to the west by Alabama. Georgia is the 24th-largest in area and 8th-most populous of the 50 United States. Its 2020 population was 10,711,908, according to the U.S. Census Bureau. Atlanta, a “beta(+)” global city, is both the state’s capital and its largest city. The Atlanta metropolitan area, with a population of more than 6 million people in 2020, is the 9th most populous metropolitan area in the United States and contains about 57% of Georgia’s entire population.
Founded in 1732 as the Province of Georgia and becoming a royal colony in 1752, Georgia was the last and southernmost of the original Thirteen Colonies to be established. Named after King George II of Great Britain, the Colony of Georgia covered the area from South Carolina south to Spanish Florida and west to French Louisiana at the Mississippi River. On January 2, 1788, Georgia became the fourth state to ratify the United States Constitution. From 1802 to 1804, western Georgia was split to form the Mississippi Territory, which later was admitted as the U.S. states of Alabama and Mississippi. Georgia declared its secession from the Union on January 19, 1861, and was one of the original seven Confederate States. Following the Civil War, it was the last state to be restored to the Union, on July 15, 1870. In the post-Reconstruction era of the late 19th century, Georgia’s economy was transformed as a group of prominent politicians, businessmen, and journalists, led by Henry W. Grady, espoused the “New South” philosophy of sectional reconciliation, industrialization, and white supremacy. During the mid-20th century, several Georgians, most notably Martin Luther King Jr., were prominent leaders during the civil rights movement. Atlanta was selected as host of the 1996 Summer Olympics, which marked the 100th anniversary of the modern Olympic Games. Since 1945, Georgia has seen substantial population and economic growth as part of the broader Sun Belt phenomenon. From 2007 to 2008, 14 of Georgia’s counties ranked among the nation’s 100 fastest-growing.
Georgia is defined by a diversity of landscapes, flora, and fauna. The state’s northernmost regions include the Blue Ridge Mountains, part of the larger Appalachian Mountain system. The Piedmont plateau extends from the foothills of the Blue Ridge south to the Fall Line, an escarpment to the Coastal Plain defining the state’s southern region. Georgia’s highest point is Brasstown Bald at 4,784 feet (1,458 m) above sea level; the lowest is the Atlantic Ocean. With the exception of some high-altitude areas in the Blue Ridge, the entirety of the state has a humid subtropical climate. Of the states entirely east of the Mississippi River, Georgia is the largest in land area.Source