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Georgia Sales and Use Tax Guidelines for Breweries

As we all know, September 1, 2017 was a day in the history books for the craft brewing industry in Georgia. With the passage of SB85 a lot changed for the industry, and of course that also included changes to the way breweries account for their taxes.

In general, the state of Georgia imposes tax on the retail purchase, retail sale, rental, storage, use or consumption of tangible personal property and on certain services. GA Code §48-8-30.

There four key concepts to understand when considering a sales or use tax obligation:

  1. The “end-user” of the tangible property or taxable service is the taxpayer;
  2. Generally, the seller of the tangible personal property or taxable service has a fiduciary responsibility to collect the tax and remit it to the appropriate tax authority;
  3. If the purchaser of tangible property is not the end-user (i.e. is a reseller), the seller is not required to withhold sales tax from the purchaser; and
  4. The use of tangible property by the purchaser that would otherwise be subject to sales tax is subject to “use” tax.

Download this resource today for a comprehensive guideline on the treatment of sales and use tax for Georgia breweries.

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