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Does a wholesaler have to collect sales tax on every sale?

Short answer

Not necessarily. A qualifying resale transaction may be exempt, but selling to another business does not automatically make a sale exempt. In Georgia, the seller should obtain an appropriate, properly completed exemption certificate and accept it in good faith.

Example

Products purchased for a retailer’s resale may qualify. Supplies purchased for that retailer’s own use require a different analysis.

What to review

Customer registration, exemption certificates, products sold, intended use and delivery location.

Official source: dor.georgia.gov/taxes/sales-use-tax

Related service: Wholesale & Distribution Accounting

This answer is general information, not advice for your specific situation. Tax rules change, so please contact us to review your facts before acting.

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