Tax rate by region Georgia (USA)

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Georgia (USA)

Georgia transitioned from a graduated individual income tax with a top rate of 5.75% to a flat tax with a rate of 5.49% on January 1, 2024. The state also significantly increased its personal exemption

Official government link: Department of Revenue

Exempted product categories

SaaS 

Reverse charge mechanism for B2B sales

Not applicable in the US

Tax ID validation required

Yes

When do you have to register

If you exceed the threshold

Online registration possible

Yes

Registration procedure

Register with the Georgia Department of Revenue to obtain a sales tax number.
File Form 600 (Georgia Corporation Income Tax Return) if earning Georgia-source income.
Appoint a Georgia registered agent if necessary

Penalties

5% of unpaid tax for each month, max 25% (Late Filing); 10% of unpaid tax after 30 days (Late Payment)

Registration threshold

$100,000.00 OR 200 transactions

Filing interval

Monthly, Quarterly, or Annually

Filing deadline

20th of the month

E-invoicing requirements

No state-wide e-invoicing mandate

Record keeping

Income tax returns and supporting documents: 3 years minimum, 7 years recommended

Local Rate Range

0% – 4%

How-To Guides: Georgia SaaS VAT

Step: 1 Threshold

You’ll need to collect sales tax in Georgia if you have nexus there. Sellers may have either physical or economic nexus in a state.

  • Physical nexus means having enough tangible presence or activity to merit paying sales tax in that state.
  • Economic nexus means passing a state’s economic threshold for total revenue or the number of transactions.

As of current law, registration is mandatory once annual Georgia retail sales exceed USD 100,000 or 200 transactions in the previous or current calendar year.

 

SaaS is generally treated as a taxable digital good when delivered electronically if it qualifies as prewritten software.

Step: 2 Business Registration

Register with the Georgia Department of Revenue (DOR) through the Georgia Tax Center (GTC) portal. Remote SaaS providers must register for a Sales and Use Tax account before collecting tax.

Step: 3 TIN/VAT Number

A Georgia Sales and Use Tax Number is issued by the Georgia Department of Revenue upon registration.

Step: 1 Standard VAT Rate

State rate is 4% + local rates (combined rates typically 6%–9% depending on jurisdiction). Destination-based sourcing applies.

Step: 2 VAT Formula

To calculate your tax amount, use the following formula:

 

Tax Amount= Net Price × Rate%

Step: 3 Reverse Charge (B2B)

No EU-style reverse charge exists. Georgia uses use tax rules. If an out-of-state SaaS seller does not collect tax and has no nexus, the Georgia business customer is responsible for self-assessing use tax. Once nexus is established, the seller must collect sales tax even for B2B transactions unless an exemption certificate is provided.

Step: 1 Selling B2C

SaaS is generally NOT taxable in Georgia because it is considered a service without the transfer of tangible personal property (as long as there is no download of the software). However, prewritten software that is downloaded remains taxable.

Step: 2 Selling B2B

Tax applies unless the buyer provides a valid Georgia exemption certificate. No automatic reverse charge. Businesses without seller nexus must self-remit use tax. With nexus, the seller collects tax normally.

Step: 3 Invoice Requirements

Invoices must contain: 

  • Seller legal name and address;
  • Georgia Sales Tax ID;
  • invoice date;
  • sequential invoice number;
  • customer name and address;
  • description of SaaS/service;
  • taxable amount; applied tax rate;
  • tax amount charged;
  • total invoice amount;
  • jurisdiction breakdown if applicable.

Step: 1 Filing Interval

Taxes are filed monthly, quarterly, or annually depending on assigned filing status and sales volume.

Step: 2 Filing Deadline

Taxes should be filed by the 20th day of the month following the reporting period.

Step: 3 Submission

Taxes are filed electronically via Georgia Tax Center (GTC) portal; payment via ACH debit, ACH credit, or approved electronic payment methods.

Step: 4 Record Keeping

Tax records must be kept for minimum 3 years, though 4 years is recommended for audit protection.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Georgia’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

Overwhelmed by SaaS sales tax compliance?

Our team of SaaS tax experts is here to help. Contact us today for a free consultation. 

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