Dec 17, 2020 Federal Tax Deductions for Small Business Charitable Donations. Small businesses can receive a tax deduction for making charitable donation. The IRS has specific reporting requirements when a small business donates: Non-food inventory; Food; Intellectual property; You won't receive a tax deduction for donating services. The business license tax in Atlanta will be based on your yearly gross revenue. If your business executes more than one activity in the same location, whichever function has the higher tax class will be applied to decide your SIC code. Your tax class is determined when you apply for an Atlanta business license. My Metro Atlanta Small Business Health Quiz (Part 1) Last week, when I wrote my message to our Metro Atlanta business clients, the biggest news was the second round of the PPP, and that expenses covered under the first round of it would be tax deductible.
We wrote this guide for online sellers who want to know if they even have to bother with sales tax in Georgia, and if so, how best to tackle the sales tax situation in the Peach State.
After reading this, you’ll know:
- Do you or don’t you need to collect Georgia sales tax?
- Which customers do you collect from?
- How much do you collect?
- What do you do with all the sales tax you’ve collected?
- Way more than you probably ever wanted to know about Georgia sales tax!
Schedule a time to look at your specific sales tax needs and learn about automation.
Do you have sales tax nexus in Georgia?
“Sales tax nexus” is just a fancy way of saying “significant presence” in a state.
Georgia considers a seller to have sales tax nexus in the state if you have any of the following in the state:
- An office or place of business
- An employee present
- Goods in a warehouse
- Ownership of real or personal property
- Delivery of merchandise in Georgia (specifically in the seller’s vehicle/fleet, etc.)
- Independent contractors or other representatives in Georgia
- Economic nexus (i.e. your sales or transactions into the state mean you are subject to the state’s economic nexus rule)
You can click here to read exactly what the Georgia Department of Revenue (Georgia’s taxing authority) has to say about what constitutes sales tax nexus in Georgia.
Do you have sales tax nexus in Georgia if you sell on FBA?
If you sell on Amazon FBA, you may have sales tax nexus in Georgia. Storing physical products in a state can create sales tax nexus, and Georgia is home to multiple Amazon Fulfillment Centers.
To determine whether or not you have items stored in an FBA warehouse in Georgia, you can do one of two things:
- Login to Amazon Seller Central and pull your Inventory Even Detail report
- ]Sign up for a 30-day free trial of TaxJar](https://www.taxjar.com/) and find out from where your Amazon inventory ships with our Amazon badge feature
You may find that your inventory is stored in one or all of Georgia’s Amazon fulfillment centers in this list:
Read here for more about Amazon FBA and sales tax nexus. And here’s a list of all the Amazon Fulfillment Centers in the United States.
Do you have economic nexus in Georgia?
Effective January 1, 2020, Georgia considers vendors who make more than $100,000 in sales annually in the previous or current calendar year or more than 200 transactions in the state to have economic nexus. As a result, vendors are obligated to collect sales tax from buyers in the state. You can read Georgia’s economic nexus guidance for sellers here and you can read more about economic nexus in every state here.
Is what you’re selling even taxable?
You’ve probably read this far because you realized you have sales tax nexus in Georgia. Your next step is to determine if what you’re selling is even taxable.
Services in Georgia are generally not taxable. So if you’re a graphic designer or a plumber, you’re in luck and you don’t have to worry about sales tax.
Tangible products are taxable in Georgia , with a few exceptions. These exceptions include certain groceries, prescription medicine and medical devices, and machinery and chemicals used in research and development.
So if you sell toys, then charge sales tax to your Georgia customers.
But if you’re a graphic designer, don’t charge sales tax to your Georgia customers.
If you have sales tax nexus in Georgia and your products are taxable, your next step is to register for a sales tax permit.
How to Register for a Sales Tax Permit in Georgia
Sellers with sales tax nexus in Georgia must apply for a Georgia sales tax permit.
Don’t skip this step! Georgia considers it unlawful to collect sales tax in their name without a permit. Go here for more on how to register for a sales tax permit in Georgia.
Schedule a time to look at your specific sales tax needs and learn about automation.
How to Collect Sales Tax in Georgia
So you’ve determined that you have sales tax nexus in Georgia and what you’re selling is taxable. And you’re all set and registered for your Georgia sales tax permit(s).
The next step is to determine how much sales tax to collect.
For many states, the sales tax rate you collect depends on whether you are based in-state or out-of-state. Ielts 3châu thông phan.
How to Collect Sales Tax in Georgia if You are Based in Georgia
Georgia is a destination-based sales tax state. So if you live in Georgia, collect sales tax based on the sales tax rate at your buyer’s address.
Example: You live and work in Woodstock, Georgia 30188 where the tax rate is 6%, but you ship to your customer in Atlanta with a zip code of 30303. Their tax rate in the 30303 zip code is 8%, so you would charge your customer the 8% tax rate.
You can look up your local sales tax rate with TaxJar’s Sales Tax Calculator or by going to TaxJar.com/mobile on your mobile device.
How to Collect Sales Tax in Georgia if you are Not Based in Georgia
Georgia wants sellers who made a sale into Georgia from outside the state to also charge sales tax based on the destination of the buyer.
Example: You live in Chattanooga, Tennessee 37401 where the tax rate is 9.25%, but your customer lives in Rome, Georgia 30161 and their tax rate is 7%. You would charge the customer the 7% tax rate.
Remember, only sellers who have sales tax nexus in Georgia need to charge sales tax to buyers in Georgia.
What are the Amazon Sales Tax Settings for Georgia?
If you are an Amazon pro seller and use Amazon to collect sales tax, be sure you have your Georgia sales tax settings entered correctly. Find step-by-step instructions for setting up your Amazon sales tax settings here.
|If you are a…||State tax||County tax||City tax||District tax||Custom Rate||Is shipping taxable?||Is gift wrapping taxable?|
|Seller living in Georgia||X||X||X||X||N/A||Yes||No|
|Selling living outside of Georgia||X||X||X||X||N/A||Yes||No|
Should you collect sales tax on shipping charges in Georgia?
The Department of Revenue had this to say on shipping taxability, “Where taxable tangible personal property is sold at retail and the seller makes a delivery charge, the charge is taxable regardless of whether the charge is optional (i.e., not required to complete the underlying sale of the tangible personal property) or separately stated.”
Therefore, you should collect tax on shipping charges if you are shipping a taxable item. it doesn’t matter if it’s separately stated or optional.
Read a full explanation of sales tax on shipping in Georgia here.
When are Georgia Sales Tax Returns Due?
When you file and pay Georgia sales tax depends on two things: your assigned filing frequency and your state’s due dates.
How often will you file sales tax returns in Georgia?
States assign you a filing frequency when you register for your sales tax permit. In most states, how often you file sales tax is based on the amount of sales tax you collect from buyers in the state.
In Georgia, you will be required to file and remit sales tax either monthly, quarterly or annually.
Georgia sales tax returns are always due the 20th of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is generally due the next business day.
2020 Georgia Monthly Sales Tax Filing Due Dates
2020 Georgia Quarterly Sales Tax Filing Due Dates
2020 Georgia Annual Sales Tax Filing Due Dates
How to File Sales Tax in Georgia
When it comes time to file sales tax in Georgia you must do three things:
- Calculate how much sales tax you owe
- File a sales tax return
- Make a payment
We’ll walk you through these steps.
How to Calculate How Much Sales Tax You Owe in Georgia
Calculating how much sales tax you should remit to the state of Georgia is easy with TaxJar’s Georgia state sales tax report.
All you do is connect the channels through which you sell - including Amazon, eBay, Shopify, Square and more - and we’ll calculate exactly how much sales tax you collected. All the information you need to file your Georgia sales tax return will be waiting for you in TaxJar. All you have to do is login!
Guide To Atlanta Small Business Tax Deductions
How to File and Pay Sales Tax in Georgia
You have three options for filing and paying your Georgia sales tax:
- File online File online at the Georgia Department of Revenue. You can remit your payment through their online system.
- File by mail You can use Form ST-3, and file and pay through the mail.
Other Facts You Should Know about Georgia Sales Tax Filing
There are a few more things you should know about sales tax in Georgia:
- Late Filing Penalty: 5% of the tax due or $5, whichever is greater, for each tax type on the delinquent return for each month or fraction that the return is delinquent up to 25% or $25, whichever is greater.
- Late Payment Penalty: Interest: 1% per month or fractional part on any unpaid tax from the due date until paid in full.
Note: Sales tax returns in Georgia are considered timely filed if postmarked by the 20th of the month following the close of the reporting period. All returns filed after that date are subject to penalty.
Many states understand that collecting sales tax is a difficult burden on merchants, and will provide a discount to help alleviate some of this burden. In Georgia, entities paying sales tax on time can claim a discount of 3% of the first $3,000 dollars of tax due and then 0.5% of the excess amount.
Georgia Sales Tax Holidays
Atlanta Chamber Of Commerce
Georgia currently has no sales tax holidays scheduled for 2020.
Check here for more information about 2020 sales tax holidays including how to handle sales tax holidays as an online seller.
And that’s it. You’ve mastered Georgia sales tax filing! Now that sales tax is out of the way, you can get back to what you do best - running your business.
Guide To Atlanta Small Business Tax Assistance
Georgia Sales Tax Resources
Guide To Atlanta Small Business Tax Relief
For more about Georgia sales tax, check out the Georgia section of the TaxJar blog.
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