To get a resale certificate in Georgia, register your business for a Georgia Sales and Use Tax Number through the Georgia Tax Center, then complete Form ST-5 (the Sales Tax Certificate of Exemption) and hand it to each supplier when you buy inventory for resale. You do not file Form ST-5 with the state. There is no fee, and once your sales tax number is active, the certificate itself does not expire.1Department of Revenue. Nontaxable Sales
Step 1: Register for a Georgia Sales and Use Tax Number
Form ST-5 requires a valid Georgia Sales and Use Tax Number, so registration comes first. Anyone who meets Georgia’s definition of a “dealer” has to register, whether the sales are online, out of state, wholesale, or otherwise exempt from tax.2Department of Revenue. Sales and Use Tax Registration – FAQ That covers retailers, wholesalers, manufacturers, and anyone else regularly selling tangible personal property in the state.3Justia Law. Georgia Code 48-8-2 – Definitions
You register online through the Georgia Tax Center. There is no fee. After you submit the application, the Department of Revenue typically emails your sales and use tax number within about 15 minutes.4Department of Revenue. Tax Registration You also receive a certificate of registration that must be displayed at your place of business.5FindLaw. Georgia Code 48-8-59
Step 2: Fill Out Form ST-5
Form ST-5 is downloadable from the Georgia Department of Revenue’s website. It asks for:
- Your Georgia Sales and Use Tax Number.
- Your legal business name and address, matching your registration.
- A general description of the tangible personal property you are buying for resale.
- Your signature certifying that the merchandise is being purchased for resale in the regular course of business.
Fill in every field. An incomplete certificate, and especially one with a missing or invalid sales tax number, is one of the most common reasons auditors disallow an exemption. Suppliers know this, and many will simply refuse the form and charge you tax until you provide a clean version.
Step 3: Give the Completed Form to Each Supplier
Georgia does not have a submission office for resale certificates. You hand Form ST-5 directly to the supplier at the time of purchase, and the supplier keeps it on file as proof that the sale qualified for the resale exemption.
The reason this matters: all sales in Georgia are presumed taxable, and the burden of proving otherwise sits with the seller.6FindLaw. Georgia Code 48-8-38 A properly completed ST-5 shifts that burden off the seller, which is why suppliers tend to be strict about the paperwork. They can verify your number using the Sales Tax ID Verification Tool on the Georgia Tax Center.7Department of Revenue. Sales Tax ID Verification Tool
If you buy from several suppliers, give a separate ST-5 to each one. Some vendors accept a blanket certificate that covers all future resale purchases; others want a new form for each order. Ask upfront so a shipment does not get held over paperwork.
What the Certificate Actually Covers
A resale certificate is not a blanket business exemption. It covers tangible personal property you plan to resell, either as-is or as a component of something else you sell. That includes inventory for your shelves, raw materials that go into a finished product, and packaging sold with the product.
It does not cover office furniture, cleaning supplies, equipment used to operate the business, or anything your business consumes internally. The rule of thumb is simple. If you use it, you owe tax on it. If you resell it, the certificate applies.
Mixed purchases are where this gets messy. If you order a case of product for resale and pull one unit for personal or in-house use, you owe sales tax on that unit. Track what you take out of inventory for internal purposes; those notes become important in an audit.
How Long the Certificate Stays Valid
Most Georgia certificates of exemption, including Form ST-5, have no expiration date. The exception is the Georgia Agricultural Tax Exemption (GATE) certificate, which renews annually.1Department of Revenue. Nontaxable Sales Your ST-5 remains good as long as your sales tax registration number stays active and the information on the form is still accurate.
Update the certificate any time your business name, address, or tax number changes, and be ready to send a fresh copy if a supplier asks. Georgia regulations also require every dealer to preserve records, including exemption and resale certificates, for at least three years after each taxable transaction.8Cornell Law School. Ga. Comp. R. and Regs. R. 560-12-1-.23 – Preservation of Records Keep your own copies as well as making sure suppliers keep theirs.
Buying From Out-of-State Suppliers
If you buy inventory from a supplier outside Georgia, you have two options: send them your Georgia Form ST-5, or use the Multistate Tax Commission (MTC) Uniform Sales and Use Tax Resale Certificate with your Georgia sales tax number filled in. If the out-of-state supplier has nexus in Georgia and does not get a valid resale certificate from you, they must charge Georgia sales tax. Get the paperwork over before your first order so you are not paying tax upfront and chasing a refund later.
Drop shipping runs the other direction too. When an out-of-state buyer with no Georgia nexus directs a Georgia supplier to drop-ship goods to a Georgia customer, the Georgia supplier can accept the MTC form (or the buyer’s home-state resale certificate) showing the buyer’s out-of-state registration number in place of a Georgia number.9Department of Revenue. Out-of-State Sellers
Penalties for Misusing the Certificate
Using a resale certificate to buy items you know are not for resale, or using a certificate obtained by fraud, is a misdemeanor under Georgia law.10Justia Law. Georgia Code 48-1-7 – Fraudulent Use of Exemption Certificate to Evade Taxes; Penalty
The financial side hurts too. If you improperly use a certificate and fail to pay the tax you actually owed, you face a failure-to-pay penalty of 5% of the unpaid tax (or $5, whichever is greater) for each month it remains unpaid, capped at 25% of the tax or $25. A false or fraudulent return draws a 50% penalty on the tax due, with no cap. Both come on top of the full sales tax that was owed, plus interest.11Department of Revenue. Penalty and Interest Rates The savings on any individual purchase rarely justify the risk.