Is Shipping Taxable in Georgia? Georgia Sales Tax Rules for Delivery and Freight Charges

General Rule: Shipping Charges Are Taxable in Georgia

Georgia treats delivery-related charges as part of the sales price when they are connected to a taxable sale. These charges may include:

• delivery charges;
• transportation charges;
• freight charges;
• shipping charges;
• shipping and handling charges.

For example:

Product price: $100 Shipping charge: $8 Taxable amount: $108

If the product is taxable, Georgia sales tax generally applies to the full $108 amount.

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Does Separately Stating Shipping Make It Non-Taxable?

No. In Georgia, separately stating the shipping charge does not generally make it non-taxable.

The Georgia Department of Revenue explains that if a taxable item is sold and the seller makes a separate charge for delivery, transportation, freight, or shipping and handling, that separate charge is taxable.

This is a key distinction for ecommerce sellers. Some states allow separately stated shipping charges to be excluded from tax, but Georgia generally does not apply that rule when the charge is associated with the sale of taxable property.

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When Are Delivery Charges Not Taxable in Georgia?

Georgia states that charges for delivery that are not associated with the sale of taxable property are not taxable.

This may apply when:

• the delivery charge is not connected to a taxable sale;
• the underlying sale is exempt;
• the item sold is not taxable;
• the purchaser or transaction qualifies for an exemption;
• the charge is for an independent delivery service rather than part of a taxable property sale.

However, for most ecommerce orders involving taxable goods shipped to Georgia customers, the related delivery or shipping charge should generally be treated as taxable.

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Common Compliance Issues for Ecommerce Sellers

Incorrect platform tax settings

Many ecommerce platforms allow sellers to configure shipping taxability by state. If Georgia shipping is incorrectly set as non-taxable, the seller may under-collect sales tax.

Applying another state’s shipping rule

Shipping tax rules vary by state. Sellers should not assume that rules from states where separately stated shipping is non-taxable will also apply in Georgia.

Mislabeling shipping and handling charges

Georgia specifically includes shipping and handling charges in its delivery-related tax treatment. Renaming a charge as handling, logistics, or processing does not necessarily change its taxability.

Marketplace versus direct sales

For marketplace sales, platforms such as Amazon, Walmart, or eBay may collect and remit Georgia sales tax as marketplace facilitators. For direct sales through Shopify, WooCommerce, or a custom website, the seller may be responsible for configuring and collecting Georgia sales tax correctly.

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Practical Tips for Sellers Shipping to Georgia

Sellers shipping taxable goods to Georgia customers should review their sales tax settings and invoice logic carefully. In most cases, delivery, freight, transportation, and shipping and handling charges associated with taxable goods should be included in the taxable amount.

Sellers should also maintain consistent records across checkout pages, invoices, order reports, marketplace reports, and sales tax filings. For exempt transactions, proper exemption certificates and supporting documents should be retained.

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Conclusion

In Georgia, delivery, transportation, freight, and shipping and handling charges are generally part of the sales price and are taxable in the same manner as the underlying sale. If a taxable item is sold, a separately stated delivery or shipping charge is generally taxable.

The key compliance takeaway for ecommerce sellers is straightforward: Georgia shipping charges should generally be configured as taxable when the underlying sale is taxable.

Source: Georgia Department of Revenue, What is Subject to Sales and Use Tax https://dor.georgia.gov/taxes/sales-use-tax/what-subject-sales-and-use-tax