# Georgia Economic Nexus Threshold

Georgia's economic nexus threshold is more than $100,000 in sales or 200 transactions.

## Included Transactions:
- Retail sales of tangible personal property delivered to a Georgia address (physically or electronically)
- Direct sales made by the seller outside of any marketplace platform
- A single customer order counts as one transaction even if fulfilled in multiple shipments

## Excluded Transactions:
- Wholesale and resale sales
- Sales of services — the threshold applies to retail sales of tangible personal property only
- Sales made through a registered marketplace facilitator (count toward the facilitator's threshold, not the business's threshold)

## Affiliate Nexus

Georgia deems an out-of-state seller a ["dealer"](https://dor.georgia.gov/taxes/sales-use-tax/out-state-sellers) when a related Georgia entity performs advertising, marketing, or sales on the remote seller's behalf, or provides other services ["significantly associated"](https://dor.georgia.gov/taxes/sales-use-tax/out-state-sellers) with maintaining the remote seller's Georgia customer base. This affiliate nexus standard is rebuttable.

Georgia also recognizes [click-through nexus](https://dor.georgia.gov/taxes/sales-use-tax/out-state-sellers) when a commission-based referral agreement exists with Georgia residents who refer customers, and gross receipts from those referrals exceed $50,000 in the prior 12 months. This provision has been effective since December 31, 2012 and is also rebuttable.

## Physical Nexus

Any physical presence in Georgia creates nexus immediately. Under [O.C.G.A. § 48-8-2](https://dor.georgia.gov/taxes/sales-use-tax/what-subject-sales-and-use-tax), triggers include maintaining an office, distribution center, salesroom, warehouse, service enterprise, or any other place of business in the state; having employees, agents, representatives, or contractors soliciting business in Georgia; and storing inventory in a Georgia warehouse, including inventory held at [Amazon FBA fulfillment centers](https://dor.georgia.gov/marketplace-facilitators). A business storing inventory in a Georgia-based Amazon fulfillment center is already a dealer under Georgia law, rendering the economic nexus threshold irrelevant to that business's Georgia collection obligation.

Delivering, installing, assembling, or servicing tangible personal property in Georgia also establishes physical nexus.

A limited [trade show exemption](https://dor.georgia.gov/taxes/sales-use-tax/out-state-sellers) applies when a business's sole Georgia presence is participation in a trade show lasting five days or fewer within a 12-month period and Georgia-sourced net income in the prior year was $100,000 or less. However, tax must still be collected on all sales made at or resulting from the event, even when the exemption applies.

Contracting with a Georgia-based [commercial printer](https://dor.georgia.gov/taxes/sales-use-tax/what-subject-sales-and-use-tax) does not create dealer status.

Out-of-state vendors holding contracts exceeding $100,000 with any Georgia state agency are required to register for Georgia sales tax under [O.C.G.A. § 48-8-14](https://dor.georgia.gov/taxes/sales-use-tax/what-subject-sales-and-use-tax), regardless of physical presence or economic nexus status.

## Trailing Nexus

Georgia recognizes trailing nexus at the [calendar-year boundary](https://dor.georgia.gov/out-state-sellers). A business that met either threshold in a prior calendar year remains subject to Georgia's collection obligation through the end of the current evaluation period. There is no fixed multi-month trailing period beyond that calendar-year boundary.

### Economic Nexus Threshold:
More than $100,000 in sales OR 200 transactions (either triggers)  
**Effective Date:** January 1, 2020  
**Evaluation Period:** Prior calendar year OR current calendar year running total  
**Previous Threshold Rules:** January 1, 2019 to December 31, 2019: $250,000 in gross revenue, no transaction count (HB 61). HB 182 reduced the dollar threshold and added the 200-transaction alternative effective January 1, 2020.

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