All sales are subject to sales tax until the contrary is established. The burden of proof that a sale is not subject to the tax is on the person who makes the sale, unless he in good faith takes from the purchaser a valid certificate of exemption. O.C.G.A. § 48-8-38(a). A seller takes a certificate in good faith when he takes a certificate that is
Fully completed, including, but not limited to, the name, address, sales tax number, and signature of the taxpayer when required;
In a form appropriate for the type of exemption claimed;
Claiming an exemption that was statutorily available on the date of the transaction in the jurisdiction where the transaction is sourced;
Claiming an exemption that could be applicable to the item being purchased; and
Claiming an exemption that is reasonable for the purchaser's type of business.
On a sale for resale, the certificate relieves the seller from the burden of proof if the seller takes in good faith a properly completed certificate from a purchaser who
Is engaged in the business of selling tangible personal property;
Has a valid sales tax registration number at the time of purchase and has listed his or her sales tax number on the certificate; and
At the time of purchasing the tangible personal property, the seller has no reason to believe that the purchaser does not intend to resell it in his or her regular course of business.
A sale that meets the definition of “casual sale” is not subject to sales tax. Please refer to Ga. Comp. R. & Regs. r. 560-12-1-.07 for the definition of “casual sale.” For purposes of the casual sale regulation, “business” means any activity engaged in by any person or caused to be engaged in by any person with the object of direct or indirect gain, benefit, or advantage. O.C.G.A. § 48-8-2(4).