Georgia Revises Regulation on Transportation and Delivery Charges

Monday, July 21st, 2014

A package delivery man.

Georgia has revised its regulation on transportation and delivery charges. The revision takes effect August 3, 2014.

The regulation, which was last updated in 1991, has been entirely rewritten. The regulation now provides a definition of delivery charges, states that delivery charges are generally taxable, and notes when delivery charges are not taxable. The regulation also lists examples of how and when tax applies to delivery charges.

Delivery charges are a seller's charges for the preparation and delivery of goods to a location designated by the purchaser. These charges are generally taxable when they are part of the sale of taxable goods. There is an exception when (1) the seller maintains an escrow account on behalf of the purchaser for delivery charges and maintains separate invoicing, books, and records that show escrow deposits, withdrawals, and balances; and (2) the contract between the seller and purchaser prohibits the seller from financing or marking up delivery charges, requires the purchaser to deposit funds in advance of delivery, and requires that the purchaser pay shipping cost and take responsibility for the property when it leaves the seller's premises.

When delivery charges are part of the sale of nontaxable goods, they are not taxable. When a transaction includes the delivery of both taxable and nontaxable goods, the delivery charge is partially taxable. The amount taxed is based on the percentage of either (1) the sales price attributable to the taxable property compared to the total sales price of all the property shipped or (2) the weight of the taxable property compared to the total weight of all the property shipped.

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TTR has a website that companies subscribe to and use daily. This website provides a list of everything that can be bought or sold in the U.S. It provides simple answers to whether buying or selling these items is taxable (subject to a sales tax or other tax), and it provides all the legal authority to support these tax answers.

TTR likes to keep things simple and fun, which is why it has great people who provide help to clients on any support questions they have about transaction tax issues.

Please visit TTR on the web at or call 866.578.8193.

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