New Sales Tax Law

Georgia Online Shoppers Potentially Affected by New Sales Tax Law

Prepared by Patrick Glenn– Staff Accountant

We all pay sales tax on what we buy.  Sometimes we pay sales tax on things we buy online and sometimes we do not. Did you know you’re technically required to pay “use” tax on items for which the seller did not collect sales tax? Most people do not know this or do not bother to “self-assess” use taxes.

In order to increase the collection of use tax, Governor Deal has signed into law HB-61 which becomes effective January 1, 2019. This new law addresses what sellers must do, and all Georgians who shop online could be affected.

HB-61 changes the definition of a “dealer” who is required to remit sales tax. The definition has been expanded to include anyone who either has more than $250,000 of Georgia revenue or over 200 separate sales of tangible personal property in Georgia during either the current or previous year. If the property is delivered either electronically or physically to a location in Georgia, it will be subject to sales tax. Businesses can collect sales tax at the time of the sale and remit it to the Georgia Department of Revenue. Or they can choose to send sales and use tax statements to customers who spent at least $500 in aggregate during the previous year.

As a business that sells in Georgia, you may be required under this new law to send statements to your customers regarding their purchases and potential taxes due.

As an individual, you may receive these forms and must pay sales or use tax to Georgia that you never paid before.

The first of these forms will not be issued until January of 2020, and there is ample time for changes to be made. We will certainly keep you updated about how this new law will affect you.

If you have any questions, please contact us.