Georgia sales tax registration and monthly filing for restaurants

A Georgia restaurant owner has a short list of tax tasks before opening day, and the sales tax account is the one that repeats every month. The Georgia Department of Revenue runs it through the Georgia Tax Center, an online portal, and its pages state three rules that surprise first-time owners: the certificate must be on display, returns are due on the 20th and a return is due even in a month with no sales. Our guide on Atlanta sales tax explains the rates that apply to restaurant meals, so this one is about the account.

Who has to register?

The department says that any individual or entity meeting the definition of a dealer in the Official Code of Georgia, section 48-8-2, must register for a sales and use tax number, whether sales are in person, online, wholesale or exempt. A restaurant that sells prepared food is a dealer. Register before you make your first sale, so that the number is ready when you set up your register.

How do you register?

Register online through the Georgia Tax Center. After you submit the form, you should receive your tax account number by email within about 15 minutes. Save the email, and write the number in your business records. If you see a registration fee, ask the department about it. Registration is tied to a place, so a second location needs its own certificate.

Where must the certificate hang?

The department says the certificate of registration must be conspicuously displayed at all times at the place for which the certificate is issued. A frame near the entrance or by the register is a good home. If you run a food truck or a pop-up, ask the department how the certificate is displayed for a business that moves.

When are returns due?

Sales tax returns are due and payable no later than the 20th day of the month following the period being reported, according to the department, which cites the Official Code and its own rules. For most taxpayers, the return is due every month. You can ask in writing to change your filing frequency, and the Georgia Tax Center lets you request a change online. Put the 20th on your calendar as a firm deadline, and if it falls on a weekend ask the department what day applies.

Do you file when you owe nothing?

Yes. The department says a sales tax return must be filed even when no tax is due or no sales were made. A restaurant that closes for a month of renovations still files. A new restaurant that registers before opening files a return for each month, with zeros until the first sale. Missing a return can cause problems with the account even when the amount is zero. Set the reminder for the nil months as firmly as for the busy ones.

How do you pay?

Filing and payment must be electronic if you owe more than $500 on a return. A taxpayer who pays by electronic funds transfer must also file electronically. That means most restaurants will file and pay through the portal every month. Ask your accountant for the current penalty amounts and vendor compensation.

How do you keep the tax money safe?

Sales tax is collected from guests and held for the state. Move it to a separate account weekly, and pay the return from that account. Match your register's tax report to the return. If your register serves more than one tax rate, for example because a catering event is in another county, keep the reports by rate. A weekly look at the tax line takes five minutes and catches a wrong setting early. Ask whoever closes the register to print the tax report at the end of each week, and file the printouts in a folder by month, so the return is a matter of copying numbers rather than hunting for them.

What if you buy an existing restaurant?

A registration certificate is issued for a specific place, so a buyer should ask the department how a sale affects the account before closing. Ask the seller for copies of recent returns and for confirmation that all returns are filed, and ask your lawyer to address unpaid tax in the purchase contract. Do not assume the old account number is yours to use, and do not collect tax under it before the department confirms your own account is active. Call the department first and register in your own name where it tells you to.

What should you do next?

Register on the Georgia Tax Center and save the account number. Print the certificate and frame it. Add the 20th of every month to your calendar with a reminder a week before. Ask your accountant who files and who checks. Then read how Georgia taxes restaurant meals in Atlanta and other counties.

More guides for your business:

• Georgia sales tax on restaurant meals in Atlanta
• Georgia food service permits, inspections and the certified food safety manager
• Atlanta sidewalk dining permit and outdoor dining rules

More in the US guides for food businesses.