Sales Tax in adjacent state? SC and GA

[SignProPlus-Chip]

Is anyone aware of how this works, before I break out the "google fu"?

We are located in SC, but have a client we are fabricating and installing a sign for in GA.

What, if any, sales tax do we charge? Do we or will we need a GA business license? We do not do any regular business in GA, if that matters.

I know this info differs from state to state, so I am asking if anyone has info for my specific area here.

 

[nwsigns]

Interstate sales are not subject to sales tax but possibly other local taxes (Business and Occupation here in WA). We send stuff all over the country so are pretty familiar with it. Use taxes are the responsibility of the end user if they apply on out of state purchases.

 

[SightLine]

Technically if the "sale" was commenced at your place of business then you would collect SC Sales Tax as usual.

However if the sale was over the phone and you are sending the product out of state then it is an out of state sale and you do not collect any sales tax.

You would report this on the back of the monthly sales tax return as "out of state sales". We have done it this way for many years and even went through an unpleasant sales tax audit a few years back with no issues.

You would only need a business license in GA (and whatever town they are in) is you are making the sale there or doing contract install work there and really not many do that for a one time smallish job. You do NOT collect GA sales tax, you are not a GA resident or business and therefore are not obligated to collect their tax for them.

Your customer is however supposed to report the out of state purchase on their tax return and pay sales tax on it themselves. As are you for ANYTHING you buy for your business (that is not for resale) such as eBay purchases, out of state equipment purchases etc. This is where we got a bit of a ding on the audit we had....

 

[royster13]

If it is being installed by you, I think you will have to collect GA sales tax.....Best to call the folks at the GA sales tax office.....

 

[Robin Canaday]

Probably have to pay sales tax, varies by state

We are based in Oregon and do some business in Washington. We have to pay sales tax on everything except surveys if any of the work is done in Washington state. So for example, if we do a survey, build some channel letters, and install the sign in Washington, we have to collect tax on the channel letters and install cost (but not the survey cost.) I'm pretty sure that ship-outs to Washington are the same as mail-order (hmm, better call Washington about that.) Of course, Georgia may be different, so it would be best to contact them.