ATLANTA — The Georgia Retail Association — the trade group that advocates for retail businesses in the state — recently reported that some remote sellers are not complying with a new state law that requires them to collect sales taxes.
“It is clear that Georgia state law now requires all remote sellers that have a physical presence or who utilize affiliate partners to collect sales taxes on their transactions. Despite this, there is evidence that sellers are still not collecting taxes on transactions. Georgia’s retail businesses are very troubled by this flaunting of the tax code,” GRA President Rick McAllister said.
The GRA has received several reports so far this year from individuals who have made purchases on which state sales tax was not collected by remote sellers who should have done so.
These sellers are defined under the tax code as dealers who are required to collect state and local sales taxes and remit them to the Georgia Department of Revenue.
Effective Dec. 31, 2012, the tax code creates a connecting point in Georgia for remote sellers who pay a commission or other consideration to residents who refer sales through a website or other means. In addition, all retailers with physical operations in the state as defined by law should be collecting and remitting sales taxes. The e-fairness legislation passed in 2012 in House Bill 386.
Those remote sellers who have not previously been collecting state and local sales taxes and lawfully remitting them to the state should now be doing so. The new law means that large online retailers, such as Amazon.com, who reach customers through “affiliate” websites based in Georgia must collect sales tax on their transactions.
For more information, go to etax.dor.ga.gov or call 877-423-6711 between 8 a.m.-5 p.m.