Georgia Taxes Refurbished Replacement Parts

Friday, February 20th, 2015

 
 
An image of car parts.
Share
Link
Georgia
Retail

The Georgia Department of Revenue ("Department") released a letter ruling discussing the taxability of refurbished replacement parts.

The taxpayer sold equipment with optional maintenance agreements to customers. Under these agreements, the taxpayer would replace worn, obsolete, or defective equipment parts with new or refurbished parts. The taxpayer refurbished these used parts into replacement parts for other customers. The taxpayer asked whether tax was due on these refurbished parts.

Georgia taxes retail sales of tangible personal property. "Sale" means any transfer of title or possession in any manner in exchange for something of value. "Retail sale" means a sale for any purpose other than resale. "Resale" means a sale for the purpose of reselling property to consumers. If a purchaser does not pay sales tax at the time of purchase, use tax is due upon the first instance of use.

The refurbished replacement parts were taxable because they were acquired in a retail sale. The parts became the taxpayer's property in exchange for replacement parts. This was a sale. The taxpayer did not resell the parts; it repaired them for reuse. Because this was not a sale for resale, it was a taxable retail sale.

http://dor.georgia.gov/sites/dor.georgia.gov/files/related_files/document/LR%20SUT-2014-11.pdf


About TTR

Transaction (buying or selling things), Tax (the tax on this activity), Resources (our people, our website, our support services) - TTR, Inc.

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 www.ttrus.com or call 866.578.8193.

Texas Releases Detailed Guidance on Exempt Organizations

Thursday, October 18th, 2018 -The Texas Comptroller has released a publication that provides detailed information on how sales and use tax a...

Telephone Answering Services Taxable in Arkansas

Tuesday, October 16th, 2018 -The Arkansas Department of Finance and Administration recently ruled that the service of answering calls on be...

Washington Provides Guidance on Lodging Tax for Online...

Friday, October 12th, 2018 -The Washington Department of Revenue released updated guidance that provides tax reporting information for bed...

Economic Nexus in West Virginia

Wednesday, October 10th, 2018 -The West Virginia State Tax Department announced that it will require remote sellers to begin collecting sales...

Idaho Provides Guidance on the Exemption for Medical...

Monday, October 8th, 2018 -The Idaho State Tax Commission recently released guidance that explains Idaho's sales and use tax laws for buy...

Arkansas Does Not Follow Federal Law on Foreign Income

Friday, October 5th, 2018 -The Arkansas Department of Taxation and Finance recently released an opinion that says the state does not conf...