Georgia has a population of nearly 11 million, which makes it an excellent location for just about any business. If you have considered selling goods or services within this state, you have an above-average chance of thriving. One of the basic things you should do before your venture begins is to ensure you comply with the set tax laws.
In Georgia, the purpose of a resale certificate is to document the purchase of tangible personal property for resale in the purchaser’s regular course of business.
In a Hurry? Here is everything you need from the Georgia Department of Revenue for every industry to get your Georgia Resale Certificate.
Read on to learn more details, including how to get a resale certificate in Georgia
- How Do I Obtain A Resale Certificate In Georgia?
- Guide for Filling out Resale
- Step 1
- Step 2
- Step 3
- Step 4
- Step 5
- Step 6
- Step 7
- How and When To Use A Georgia Resale Certificate
- What Should You Do If Someone Presents To You a Georgia Resale Certificate?
- Step 1- Do a Brief Verification Process
- Step 2- Verify the Authenticity of the Certificate
- Step 3- Keep Your Records
- What is the history of resale certificates?
- How do I get a sales tax exemption form in Georgia?
- How much is a resale certificate in Georgia?
- How long does it take to register a Georgia Sales tax exemption?
How Do I Obtain A Resale Certificate In Georgia?
Obtaining a resale certificate in Georgia is not as challenging as many may assume. You merely need to fill out the Resale Certificate). You can get this form in PDF on the Georgia Department of Revenue website. This is the same site you should visit to get other necessary business tax forms.
Filling out the forms is easy-peasy. The process merely requires providing basic information such as your Georgia sales tax permit number, a general description of your type of merchandise, your name, and your address. If you apply for a blanket resale certificate, it will remain valid for as long as the authorities don’t revoke it in writing.
Guide for Filling out Resale
One certificate is enough to show that all purchases are intended to be resold and, therefore, exempt from taxation. This makes the process of filling out the form relatively easy because you can always apply for a blanket certificate. For you to avoid getting into trouble with the taxman and for a seller to accept your certificate, it is crucial to have filled out the Georgia resale form correctly.
Here is a step-by-step guide on how to fill out this important form.
Download Georgia Sales and Use Resale Certificate
Provide basic information about your name, phone number, and address
Key in the Georgia Sales and Use Tax Permit Number
Provide the name and address of a seller
Describe the items to be acquired in a brief
Describe your business and what you sell in brief
Indicate that the property you want to buy is for resale. Include the date on the certificate and sign.
How and When To Use A Georgia Resale Certificate
Once you have obtained your resale certificate, you must submit it to a seller anytime you want to acquire resale goods. It is illegal for a seller to allow you to purchase goods tax-free if you fail to produce your original resale certification.
As the holder of a resale certificate in the state, your responsibilities include:
- Don’t use the resale certificate when purchasing goods not intended for resale.
- If you opt not to resell an item you purchased tax-free using the certificate, make sure you take care of the taxes you are owned.
- Don’t use the certificate as a means to evade taxes. This is illegal and can be charged as a felony or misdemeanor, depending on the accumulated taxes that are evaded. Evaded taxes amounting to more than $750 but less than $20,000 can attract third-degree felony charges. On the other hand, evaded taxes amounting to $20,000 or more attract second-degree felony charges.
Sellers also have responsibilities that cannot be escaped when accepting resale certificates. They include:
- You have to confirm the proper completion and validity of the resale certificate.
- Don’t accept certificates if you suspect the goods being bought are not for resale purposes.
- You must keep each retail certificate for about four years in your records. This allows you to validate claims that goods bought were for resale and hence exempted from tax.
What Should You Do If Someone Presents To You a Georgia Resale Certificate?
Whether you are a wholesaler or retailer, someone may present a resale certificate when making a purchase. Here are the steps to take:
Step 1- Do a Brief Verification Process
It is crucial to confirm that the Georgia resale certificate presented is filled out with all the essential information. This may include the buyer’s name and the items they sell, a general description of the goods bought for resale purposes, and the name of your store. Additionally, ensure you get the address and signature of the buyer.
The need to verify that a certificate contains all the vital information must not be underestimated. If any of the details are missing and you still proceed to offer a tax-free purchase, you may end up in trouble in case of an audit.
Step 2- Verify the Authenticity of the Certificate
If a Texas resale certificate has all the needed information, this is a good sign. However, it would be best to protect yourself further by checking the validity of the document with the state. This can easily be done online through an Georgia Tax Permit Search.
Step 3- Keep Your Records
Having the certificate on file is essential, just in case the auditors knock on your door because of sales taxes that were dodged. Usually, a buyer can use the same certificate as long as their information does not change, and they continue trading in the same selection of products.
What is the history of resale certificates?
Resale certificates have been around for well over a decade. In fact, the concept of resale certificates is as old as auctioning itself and came about because consumers demanded it. Consumer surveys conducted in the late 1980s showed that consumers wanted to be able to buy goods at lower prices than those at retail stores. These surveys were pivotal in providing the impetus for a federal law to require large ticket sellers (over $500) to provide buyers with information about the original seller and also allow them to cancel their purchase within three business days. This legislation was enacted in 1993 and became known as the “The Cooling-Off Rule”, codified at 15 U.S.C., Section 2302. This law has also been implemented in most states, and is known as the “Satisfaction Guaranteed Law”.
How do I get a sales tax exemption form in Georgia?
There are several different types of sales tax exemptions in the state of Georgia. The best resource to get a detailed breakdown of all of the different exemption options is Georgia.org
How much is a resale certificate in Georgia?
A Georgia resale certificate is free to download from the Georgia Sales Tax exemption form.
How long does it take to register a Georgia Sales tax exemption?
There is no need to register the sales tax exemption form as it will be used for your own records when you go to purchase goods that you intend to resell so that you won’t be paying sales tax upfront.
There you have it, detailed information about how to get a resale certificate in Georgia, how to use it, and even the responsibilities you have as a certificate holder. We hope this post answers all the questions you may have, especially if you want to start a venture within the state.
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