Effective April 1, 2020, ride-sharing service providers (e.g. Uber, Lyft) are required to collect and remit sales tax in Georgia as a result of the marketplace nexus legislation enacted by the state earlier this year. Per the legislation, a marketplace facilitator is defined as a person that contracts with a seller to facilitate retail sales on behalf of the seller by directly or indirectly:
The Georgia Department of Revenue has assessed Uber over $22 million dollars for past periods based on the Department’s position that the rides are subject to tax as for-hire transportation services. Ride-sharing companies had lobbied the state legislature to pass a compromise 50-cent flat fee on ride-shares instead of the full sales tax rate. However, the legislation failed to pass before the General Assembly was suspended indefinitely. Uber spokeswoman Evangeline George said, “While sales tax will begin applying to rides on April 1, we are advocating for a resolution when the Legislature returns…” (H.B. 276, Laws 2020, effective April 1, 2020)