Compliance Division
Use Tax Obligations For Service Professionals

Sales and Use Tax Overview

Sales and Use Tax in general: Sales and Use Tax is a tax upon the consumption of tangible personal property and certain services. It is levied or imposed upon retail sales, rentals, leases, uses, or consumption of tangible personal property and certain services that are specifically taxed under the Georgia Retailers and Consumers Sales and Use Tax Act. Every person making a retail sale should collect and remit the applicable tax on all sales not otherwise supported as exempt. The sales tax rate ranges from four to eight percent of the purchase price or rental charge of tangible personal property sold or rented in Georgia. The tax rate varies among counties because of the Local Option Tax, Educational Local Option Tax, Special Purpose Local Option Tax, Homestead Local Option Tax, and Metropolitan Atlanta Rapid Transit Authority (MARTA) Tax.

Internet, Mail Order and Out of State Purchases: Georgia Use Tax is due on all purchases made through the internet, via mail order, or from an out-of-state company when Georgia Sales Tax is not collected by the selling company. The use tax rate is the same as the sales tax rate imposed in the Georgia county of delivery.

Most Frequently Asked Questions

Q. Is use tax due if property is purchased from a foreign vendor (out-of state seller) and delivered into and used in Georgia?

A. Yes, if the seller fails to collect Georgia sales taxes (state and local). The business professional purchaser must file a use tax form and submit the appropriate state and local county taxes. A credit may be allowed on like taxes paid in the state of origin.

Q. How does use tax apply to service providers?

A. Sales of tangible personal property to professional service providers; such as equipment, instruments, materials, and supplies for use and consumption in connection with their services are taxable at the time of purchase. Professional service providers include doctors, dentists, veterinarians, ophthalmologists and optometrists. A review of invoices should be conducted so as to provide us with a listing of such purchases that meet this criterion.

 

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