In Georgia, you are required to obtain a Sales Tax Certificate of Registration (also knows as a State Resale Certificate) for a number of reasons. A simple question you may ask yourself is: “Will I purchase items and resell them?” If the answer is YES, you must have a Sales Tax Certificate of Registration to legally do business. There are many circumstances that will require your business to have a Sales Tax Certificate of Registration.  A few reasons are listed below:

Goods: Any goods purchased with the intent to resell require a Sales Tax Certificate of Registration. This is very beneficial to you because you are able to purchase these goods tax free. You do not have to pay for sales tax when you purchase items that are intended to be resold with your Sales Tax Certificate of Registration. Most legitimate wholesale companies will require your Sales Tax Certificate of Registration prior to purchasing items from them. You are typically unable to open accounts with distributors, vendors, or wholesalers without a Sales Tax Certificate of Registration. Even items that will be incorporated into another product (such as screws that will be used to hold together a toy) require a Sales Tax Certificate of Registration.

Services: When reselling services in Georgia, you are also required to obtain a Sales Tax Certificate of Registration. This also provides a huge benefit to you. With your Sales Tax Certificate of Registration, you are able to purchase these services tax free. This allows you to save on costs and resell these services. Some examples of services are white labeling services, online services, or in-person services.

Property: If you intend to rent out property of any kind that you purchased or rent, you will also need to obtain a Georgia Sales Tax Certificate of Registration. If you plan to rent out your home, car, or other property, you must obtain a Sales Tax Certificate of Registration. This includes real or personal property alike.