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Georgia Sales Tax Law Takes Effect on April 1

Online sales tax
Georgia Sales Tax Law Takes Effect on April 1

On April 1, 2020, marketplace facilitators, such as eBay and Etsy will now be responsible for collecting and remitting Georgia sales and use tax, according to Charles Maniace, Vice President of Regulatory Analysis at Sovos, which offers tax-compliance services.

eBay had referenced the Georgia law in an announcement on its eBay Main Street website last month, writing: “The Legislature moved quickly to resurrect and pass a bill from 2019 requiring marketplace facilitators to collect and remit tax. HB 276 was subsequently signed by Governor Brian Kemp and will take effect April 1st of 2020.”

However, eBay has yet to add Georgia to the list of states for which it collects and remits sales tax on its help page on the eBay website. Etsy hasn’t added Georgia to its help page on the Etsy website either.

Sovos’s Maniace offered the following advice to sellers:

  • Marketplace facilitators will be required to collect and remit sales tax when its sales is or exceed $100,000 in the previous or current calendar year.
  • Facilitated sales and sales made directly by the marketplace facilitator both count towards the $100,000 threshold.
  • If marketplace facilitators are required to collect and remit sales tax because it meets Georgia’s requirements, the marketplace seller is no longer required to collect or remit taxes.

Note: We were unable to find details about the Marketplace Facilitator law on the Georgia Department of Revenue website.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.