Use caution when choosing “Exempt From Sales Tax”.
If you are purchasing on behalf of a booster club, this purchase is probably not exempt from Georgia sales tax.
Make sure use the following basic guidelines when choosing “Exempt From Sales Tax”.
The organization must have documents to prove exemption. Either you must be able to provide a document from the Georgia Department of Revenue indicating the exemption status of the organization named in the “Billing Address” or we must have one in our files. We maintain sales tax exemption documents for customers who have purchased exempt items previously.
The name and address in the “Billing Address” must match the name and address on the check or other form of payment. It is against Georgia law to purchase items using a school exemption certificate and use a check from a booster club to make payment.
Detailed Sales Tax Exemption Requirements
The information that follows is intended to answer some of the many questions regarding exemption from Georgia Sales Tax. Each retailer in the state of Georgia is required by the Department of Revenue to collect sales tax on all sales of merchandise unless the purchaser establishes the following conditions.
The purchaser must be registered with the Georgia Department of Revenue and granted an exemption status by the department.
The purchaser must present to the seller specific documentation as proof of their registration at the time of the sale or the seller must have purchaser’s documentation on file. Acceptable forms of documentation are ST-UCS-1 and ST-5. These documents are described in the code segment below.
The billing information on the invoice must match the organization name on the document (either ST-UCS-1 or ST-5) submitted.
The account from which payment is made must belong to the exempt organization and the document (either ST-UCS-1 or ST-5), the invoice, and the form of payment (either check or credit card) must all have the same organization name. It is not legal to accept payment from anyone other than the registered organization for payment of an invoice which has been deemed exempt from state sales tax.
The code segments below are taken from chapter 560 of the rules and regulations by the Georgia Secretary of State. A complete copy may be obtained at http://rules.sos.state.ga.us. The segments referenced are commonly applicable to sales of awards, apparel and similar items.
560-12-1-.08 Certificate of Exemption. Amended.
(1) All gross sales of a dealer are subject to the tax until the contrary is established. The burden of proof that a sale is not subject to the tax is upon the person who makes the sale, unless he takes from the purchaser a valid Certificate of Exemption. All sales for which exemptions are claimed but which are not supported by a valid Certificate of Exemption will be deemed sales at retail and the dealer or seller will be liable for the tax.
(2) Dealers making exempt sales must have on file for ready inspection by the Commissioner, one of the following Certificates of Exemption, properly executed, and taken in good faith by the seller in order to be relieved of the burden of paying the tax.
(b) Form ST-5: This Certificate shall be used by registered Georgia dealers and/or Georgia
purchasers coming under the provisions of this Act, and shall indicate the reason for the exemption.
(j) ST-UCS-1: Letter of Authorization. This Certificate of Exemption, Letter of Authorization, shall be used by the subject college, university, secondary or elementary school for purchasing only tangible personal property described in the letter.
560-12-2-.22 Churches, Religious, Charitable, Civic and Other Non-Profit Organizations.
No exemption is granted to churches, religious, charitable, civic and other non-profit organizations. They are required to pay the tax on all purchases of tangible personal property. Further, when such organizations engage in selling tangible personal property at retail, they are required to comply with provisions of the Act relating to collection and remittance of the tax.
Authority Ga. Code Ann. Secs. 92-3438a, 92-8405, 92-8406, 92-8409, 92-8427. History. Original Rule entitled “Churches, Religious, Charitable, Civic and Other Non-profit Organizations” adopted. F. and eff. June 30, 1965.
560-12-2-.79 Schools. Amended.
(1d) Exemption certificates covering purchases of tangible personal property by registered schools and Boards of Education shall be honored only when purchase is pursuant to an official purchase order signed by a person authorized to obligate the school or Board of Education for payment therefore out of public funds.
(10) Purchases by Public Schools, School Groups, Organizations, etc. Official Purchase Orders shall not be recognized for tangible personal property such as year books, class rings, graduation gowns and caps, photographs, etc. or purchases for any school group, organization, association, or individual. The tax shall be paid to vendors on such purchases. If no tax is charged by the vendor, purchaser must declare the tax and file a "Miscellaneous" Sales Tax Report (Form ST-3).
Gwinnett County Accounting Procedures
The following excerpt is from page 36 of the Gwinnett County Local Schools Accounting Procedures Manual. The bookkeeper in each Gwinnett County school should have a copy of the manual for reference.
Payment of sales tax is not required on the following items. A Sales and Use Tax Certificate of
Exemption should be completed and presented to the vendor at the time of purchase:
Items purchased for use in the instructional or school administrative program.
Items purchase for resale (fund raisers, yearbooks, book fair, etc.), provided the net
proceeds are used solely for the benefit of the school.
Concessions (including all vending items), provided the net proceeds are used solely for
the benefit of the school.
Out-of-state mail or internet orders if the company does not charge Georgia sales tax.
Payment of sales tax is required at the time of purchase on the following items:
Meals purchased for staff development, employee recognition or student meetings.
If it cannot be determined by these guidelines whether or not sales tax should be paid, the school should pay sales tax on the purchase.
Items purchased and given to faculty (ex: awards).
Non-instructional items purchased and taken home by students (ex: ribbons, trophies,
Permitting any outside agency (PTA, Booster Club, etc.) access to a GCPS completed Sales and
Use Tax Certificate of Exemption form is prohibited.