Georgia economic nexus threshold

Affiliate nexus

Georgia deems an out-of-state seller a "dealer" when a related Georgia entity performs advertising, marketing, or sales on the remote seller's behalf, or provides other services "significantly associated" with maintaining the remote seller's Georgia customer base. This affiliate nexus standard is rebuttable.

Georgia also recognizes click-through nexus when a commission-based referral agreement exists with Georgia residents who refer customers, and gross receipts from those referrals exceed $50,000 in the prior 12 months. This provision has been effective since December 31, 2012 and is also rebuttable.

Physical nexus

Any physical presence in Georgia creates nexus immediately. Under O.C.G.A. § 48-8-2, triggers include maintaining an office, distribution center, salesroom, warehouse, service enterprise, or any other place of business in the state; having employees, agents, representatives, or contractors soliciting business in Georgia; and storing inventory in a Georgia warehouse, including inventory held at Amazon FBA fulfillment centers. A business storing inventory in a Georgia-based Amazon fulfillment center is already a dealer under Georgia law, rendering the economic nexus threshold irrelevant to that business's Georgia collection obligation.

Delivering, installing, assembling, or servicing tangible personal property in Georgia also establishes physical nexus.

A limited trade show exemption applies when a business's sole Georgia presence is participation in a trade show lasting five days or fewer within a 12-month period and Georgia-sourced net income in the prior year was $100,000 or less. However, tax must still be collected on all sales made at or resulting from the event, even when the exemption applies.

Contracting with a Georgia-based commercial printer does not create dealer status.

Out-of-state vendors holding contracts exceeding $100,000 with any Georgia state agency are required to register for Georgia sales tax under O.C.G.A. § 48-8-14, regardless of physical presence or economic nexus status.

Trailing nexus

Georgia recognizes trailing nexus at the calendar-year boundary. A business that met either threshold in a prior calendar year remains subject to Georgia's collection obligation through the end of the current evaluation period. There is no fixed multi-month trailing period beyond that calendar-year boundary.