Sales and use tax on asset sale in GA

searcher profile

July 19, 2024

by a searcher from Charles Sturt University in New Jersey, USA

Hello,

Does asset sale transaction in state of GA trigger sales and use tax? Anyone have any knowledge on this?

Thanks
Ruchik

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commentor profile
Reply by a searcher
from Mercer University in Atlanta, GA, USA
I'll raise your "stupid question" with a stupid (but potentially directionally helpful) answer - here's what ChatGPT had to say: In Georgia, the sale of tangible personal property as part of a business asset sale is generally subject to sales tax. This includes items such as equipment, furniture, and inventory. However, the sale of intangible assets, such as goodwill, trademarks, or customer lists, is typically not subject to sales tax.


To better understand your specific situation and avoid potential tax liabilities, you should consult the Georgia Department of Revenue's guidelines on sales and use tax, particularly regarding business asset sales. The following links provide detailed information and resources: - [Georgia Department of Revenue Sales and Use Tax FAQ](https://dor.georgia.gov/sales-and-use-tax-faq) [[❞]](https://dor.georgia.gov/sales-and-use-tax-faq) - [Successor Liability Information](https://dor.georgia.gov/successor-liability) To ensure compliance, it’s advisable to consult with a tax professional or attorney who specializes in Georgia tax law to review the specifics of the transaction. They can provide detailed guidance based on the exact nature of the assets being sold and any applicable exemptions or specific rules.

P.S. I don't believe in stupid questions =) Best of luck to you in your search!
commentor profile
Reply by a lender
in Stuart, FL, USA
Hi Ruchik, I don't know if you are the buyer or the seller in the transaction but either way you should contact the Department of Revenue in the state of Georgia and ask for a clearance letter.

This will determine that there are no sales tax due or that any action is forthcoming on the seller's business.

Even though in an asset sale, in theory, you would not be liable for any sales taxes that are due from the seller, it is best to get the clearance letter as the laws may change. As an example in Florida, the department of revenue got so sick and tired of being ripped off they changed the rules and said even on an asset sale, if taxes are due, and they're not paid prior to closing, the buyer is responsible. So again, check with the rules for the Department of Revenue but it's still best to get the clearance letter. Hope this helps
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