Georgia Resale Certificate: How to Get, Use, and Accept One

TL;DR

• A Georgia resale certificate lets a buyer purchase qualifying property or services tax-free for resale.

• Registered Georgia dealers and purchasers use Form ST-5. Out-of-state dealers buying in Georgia for resale elsewhere use Form ST-4.

• A resale buyer must sell tangible personal property, hold a valid sales tax registration number, and list that number on the certificate.

• Georgia resale certificates do not expire. One properly completed ST-5 covers all later qualifying purchases from that supplier.

• A missing or invalid certificate can make the seller liable for tax. Exposure equals $4,000 per $100,000 of unsupported sales at Georgia's 4% state rate, before local tax.

What is a Georgia resale certificate?

A Georgia resale certificate is the document a buyer gives a seller to purchase tangible personal property tax-free for resale under O.C.G.A. § 48-8-30. Form ST-5, Sales Tax Certificate of Exemption, serves as the Georgia purchaser’s certificate.

The buyer claims resale treatment by selecting Box 1. The exemption covers purchases for resale only. It does not cover property the buyer will use or donate, even if the buyer otherwise qualifies to make tax-free resale purchases. For purposes of Form ST-5, purchases and sales include leases and rentals.

Under O.C.G.A. § 48-8-38(f), a digital product, digital good, or digital code can qualify as purchased for resale when the buyer later provides it as an integral, inseparable component of a service or another digital product to an ultimate consumer. The buyer must maintain records that substantiate the resale.

How do I get a Georgia resale certificate?

A Georgia buyer must register for a sales tax number through the Georgia Tax Center and complete Form ST-5 before claiming resale treatment. Georgia law requires the buyer to hold a valid sales tax registration number at the time of purchase and list it on the certificate.

On Form ST-5, enter the supplier's name and address and the date, then the purchaser's name, type of business, address, and Georgia sales tax number. Check Box 1 for resale, add the signer's printed name, title, telephone, and email, sign under penalties of perjury, and give the certificate to the supplier.

The seller should review the form for missing or inconsistent information before allowing a tax-free purchase. Georgia’s resale test requires a valid sales tax number at the time of purchase. The Department’s Sales Tax ID Verification Tool lets sellers confirm one. Verification gives the seller practical support for accepting the certificate in good faith.

Which form is the Georgia resale certificate?

Form ST-5 is the Georgia resale certificate form for registered Georgia dealers and Georgia purchasers. A buyer claiming the resale exemption selects Box 1 and provides the required sales tax number.

Georgia assigns different forms based on the buyer and delivery circumstances. Under Georgia’s exemption certificate rule, an out-of-state dealer uses Form ST-4 when buying tangible personal property in Georgia for resale in another state. A Georgia dealer uses Form ST-6 when the seller delivers the purchase outside Georgia.

Can an out-of-state buyer issue a Georgia resale certificate?

It depends on where the buyer will resell. An out-of-state dealer buying tangible personal property in Georgia for resale in another state gives the seller Form ST-4. A Florida dealer that buys inventory in Georgia and resells it in Florida uses ST-4.

A buyer that will resell in Georgia must meet Georgia's resale test, which requires a valid Georgia sales tax registration number at the time of purchase, listed on the certificate. An out-of-state business reselling to Georgia customers registers in Georgia and uses Form ST-5.

What makes a Georgia resale certificate valid?

A Georgia resale certificate is valid when the seller takes a properly completed certificate in good faith. Under O.C.G.A. § 48-8-38(b), a properly completed certificate taken in good faith is fully completed, including the buyer's name, address, sales tax number, and signature when required. It is on a form appropriate for the exemption claimed. It also claims an exemption that was available on the transaction date where the sale is sourced, that could apply to the item, and that is reasonable for the buyer's type of business.

A resale transaction must also satisfy three specific requirements. The buyer must sell tangible personal property in its regular business. The buyer must hold a valid sales tax registration number at the time of purchase and list that number on the certificate. The seller must also have no reason to believe that the buyer plans to use the item instead of reselling it in the regular course of business.

For example, a retailer purchasing inventory for resale can satisfy the business-purpose test. A service business claiming resale treatment for office furniture would give the seller reason to question whether the exemption applies.

Georgia law sets no grace period for collecting a resale certificate after the sale. A seller is protected only when it takes a properly completed certificate in good faith, so collect it at or before the sale.

Certificate misuse can cause the Georgia Department of Revenue to revoke the seller’s certificate, the purchaser’s certificate, or both under Ga. Comp. R. & Regs. r. 560-12-1-.08.

Does a Georgia resale certificate expire?

Georgia resale certificates do not expire. One properly completed ST-5 covers all later qualifying purchases from that supplier. The Georgia Department of Revenue identifies one exception among exemption certificates. The Georgia Agricultural Tax Exemption certificate expires annually, but that expiration does not apply to resale certificates.

How long must sellers keep Georgia resale certificates?

Georgia requires wholesale dealers to keep sales records for three years. Keep each ST-5 at least that long after the last sale it supports. O.C.G.A. § 48-8-53 requires those records to show the purchaser's name and address, the purchase date, the item, and the price, and to be open to inspection by the commissioner.

What happens if a Georgia resale certificate is missing or invalid?

Unsupported exemption claims are deemed retail sales, and the dealer becomes liable for the tax under Georgia’s exemption certificate rule. The liability includes Georgia’s 4% state rate plus applicable local sales tax. A seller cannot rely on an incomplete certificate or one that does not reasonably apply to the buyer, the purchased item, or the claimed exemption.

The immediate state tax exposure is $4,000 per $100,000 of unsupported sales at Georgia's 4% state rate, before local tax. The seller must pay tax it should have collected from the buyer. In addition, certificate misuse can cause Georgia to revoke the seller’s certificate, the purchaser’s certificate, or both.

When a certificate review turns up prior periods where Georgia tax went uncollected, Taxwire runs voluntary disclosure agreements, which typically cover a lookback of three to four years. Buyers that paid Georgia tax on inventory they later resold can use Taxwire's tax recovery service to reclaim the overpayment.

Frequently asked questions

How does Georgia’s digital-products resale rule work? A digital product, digital good, or digital code can qualify for resale when the buyer later provides it as an integral, inseparable component of another service or digital offering to the ultimate consumer. The buyer must keep records that substantiate the resale under O.C.G.A. § 48-8-38(f).

How can a seller verify a buyer’s Georgia sales tax number? Enter the number in the Department of Revenue’s Sales Tax ID Verification Tool. Georgia’s resale test requires the buyer to hold a valid sales tax registration number at the time of purchase and list it on the certificate.

Must a buyer sign an electronic resale certificate? No. Georgia requires the purchaser's signature only on a paper certificate. Regardless of the transaction medium, the seller must collect the same required purchaser and exemption information.