Georgia – Changes in Affiliate and Click-Through Nexus Laws

SALT Report 1803 -The Georgia Department of Revenue issued a reminder for taxpayer’s regarding changes to the state’s affiliate and click-through nexus laws enacted in HB 386.  Effective October 1, 2012, all out-of-state sellers are now required to collect sales tax from Georgia customers if:

  • A related company in Georgia sells similar products and uses a business name that is similar to the out-of-state seller,
  • A related company uses trademarks, service marks, or trade names in Georgia similar to those used by the seller, or
  • Any person or entity located in Georgia delivers, installs, or assembles the seller’s products, performs maintenance services, provides pick-up services, or performs similar activities in Georgia on the seller’s behalf

Additionally, HB 386 provides that effective December 31, 2012, out-of-state sellers also will be required to collect sales tax from Georgia customers if:

  • The seller made more than $50,000 in sales to Georgia customers during the preceding 12 months that were referred to the seller by Georgia residents, either by a link on a website, an in-person presentation, or through telemarketing, and
  • The seller pays a commission to Georgia residents based on completed sales referred to them by the resident

The Department notes that out-of-state sellers with business connections in Georgia are required to collect tax based on the rate in effect in the jurisdiction in which the customer takes delivery.

For Further Information:

Georgia Department of Revenue – Affiliate and Nexus Provisions