My business purchases products over the Internet, and the seller does not collect my home state’s sales tax. Is my business required to pay sales and use tax to my home state (where my business is located)?

If your business is the end-user or not otherwise exempt, your business is probably required to pay the complimentary “use” tax. Be careful when a vendor tells you “no sales tax” is due on your purchase. The seller may choose not to collect your state’s sales tax and, indeed, may have no legal obligation (because of lack of nexus) to collect your state’s sales tax. But this does not mean that your state’s corresponding “use” tax is not due. As the end-user, your business may be required to accrue and remit use tax to your state. In Georgia, for instance, businesses that do not have a sales tax number must report and pay use tax using Georgia Form ST-3USE.

The Litwin Law Firm, P.C., based in Atlanta, Georgia, represents clients statewide including Fulton County, Dekalb County, Decatur County, Cobb County, Douglas County, Forsyth County, Gwinnett County, Rockdale County, Henry County, Clayton County, Carroll County, Fayette County, Paulding County, Bartow County, Richmond County, Muscogee County, Columbia County, Clarke County, Chatham County Dougherty County, Glynn County and Cherokee County including the cities of Sandy Springs, Alpharetta, Roswell, Carrollton, Decatur, Marietta, Smyrna, Duluth, Cumming, Woodstock, Athens, Brunswick, Gainesville, Douglasville, Newnan, Peachtree City, Lawrenceville, Stockbridge, McDonough, Rome, Augusta, Savannah, Macon, Columbus, Albany and Dalton.

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