Apply for a Tax Resale Number in Georgia: A Comprehensive Guide
In the bustling state of Georgia, businesses that engage in the sale of taxable goods and services often need to apply for a tax resale number. This unique identification number is issued by the Georgia Department of Revenue and is essential for companies to legally purchase goods from wholesalers or manufacturers without paying sales tax. Obtaining a tax resale number is a straightforward process, but it is important to understand the requirements and steps involved to ensure a smooth application. This article will provide a comprehensive guide on how to apply for a tax resale number in Georgia.
Understanding the Purpose of a Tax Resale Number
A tax resale number, also known as a resale certificate or permit, allows businesses to purchase items for resale without paying the sales tax. This means that when a business buys goods from a supplier, it can issue a resale certificate to the supplier, which will exempt the purchase from sales tax. Once the business resells the goods to its customers, it is responsible for collecting and remitting the sales tax to the Georgia Department of Revenue.
Eligibility for a Tax Resale Number
To be eligible for a tax resale number in Georgia, a business must meet certain criteria. The business must be engaged in the sale of taxable goods or services, and it must be purchasing items for resale. Additionally, the business must be a legal entity, such as a corporation, partnership, or sole proprietorship. It is important to note that certain types of businesses, such as those selling food or beverages, may not be eligible for a tax resale number.
Steps to Apply for a Tax Resale Number
1.
Register with the Georgia Department of Revenue
Before applying for a tax resale number, you must first register your business with the Georgia Department of Revenue. This can be done online through the Georgia Tax Center or by completing and submitting Form 870-TN, Application for Resale Certificate.
2.
Complete the Application
Once you have registered, you will need to complete the Application for Resale Certificate (Form 870-TN). This form requires information about your business, such as the legal name, address, type of business, and the nature of your business activities.
3.
Submit the Application
After completing the application, you must submit it to the Georgia Department of Revenue. You can submit the form online or by mail. It is important to ensure that all required information is accurate and complete to avoid delays in processing.
4.
Wait for Approval
Once your application is submitted, the Georgia Department of Revenue will review it and issue a tax resale number if everything is in order. This process typically takes a few days to a few weeks, depending on the volume of applications being processed.
5.
Use Your Tax Resale Number
Once you receive your tax resale number, you can begin using it to purchase goods for resale without paying sales tax. Be sure to keep your resale certificate on file and provide it to suppliers when making purchases.
Conclusion
Applying for a tax resale number in Georgia is a crucial step for businesses engaged in the sale of taxable goods and services. By following the steps outlined in this guide, you can ensure a smooth and efficient application process. Remember to keep your tax resale number and certificate on file and use them when purchasing goods for resale to avoid any legal issues.
