How to Get a Resale Certificate in Georgia

Suppose you’re starting a limited liability company (LLC) in Georgia and planning to sell goods subject to sales tax. Before doing business, you’ll need to get a certificate of exemption, a resale certificate in other states.   

But don’t worry; this guide lays out all you need to do to get a certificate of exemption in Georgia.

What Is a Certificate of Exemption?

If your LLC expects to sell tangible goods in Georgia, a certificate of exemption will enable you to purchase those goods without paying sales tax. This prevents your goods from being double taxed, as you will need to charge your customer’s sales tax when they buy the goods. 

If you purchase goods without paying sales tax and neglect to charge sales tax to customers who buy those goods, or if you fail to sell the goods, you and your LLC will be responsible for the sales tax and could face steep fines. 

Suppose you purposely purchase an item not intended for resale, such as office equipment, and use your certificate of exemption to avoid paying sales tax. In that case, that’s tax fraud, a federal offense. In Georgia, the penalty is repayment of the tax owed and up to a year in prison. 

Each certificate of exemption applies to only one vendor, so you’ll need one for each vendor. 

Suppliers and vendors do not have to accept certificates of exemption. However, a vendor might refuse because the vendor would be responsible for the sales tax if your certificate is invalid.

How to Obtain a Certificate of Exemption in Georgia

To obtain a certificate of exemption in Georgia, visit the Department of Revenue website to download the form.

The form is simple to fill out.

Once you have the certificate, present it to your vendor and keep a copy for your records.

Does a Certificate of Exemption Expire in Georgia?

Georgia certificates of exemption do not expire, though it’s a good idea to review them every few years to ensure the information is up to date.

In Closing

In Georgia, a certificate of exemption is relatively easy to obtain yet provides significant savings. It will also help you and your LLC avoid potentially substantial penalties. 

Be sure to present the correct certificate to your vendors and keep track of expiration dates so your certificates are always current. You don’t want to find yourself paying sales tax when you don’t have to.