by Teresa Farnsworth May 24, 2021
Sellers use tax is imposed on the retail sale of tangible personal property sold in Alabama by businesses located outside of Alabama which have no inventory located in Alabama, but are making retail sales in Alabama via sales offices, agents, or by any significant recurring contact or “nexus” with Alabama.
The “Simplified Seller Use Tax Remittance Act,” allows eligible sellers to participate in a program to collect, report and remit a flat eight percent (8%) sellers use tax on all sales made into Alabama.
An eligible seller is one that sells tangible personal property or a service into the State of Alabama from an inventory or location outside the state but does not have a physical presence in the State of Alabama and who is not otherwise required by Sections 41-4-116 or 40-23-190, Code of Alabama 1975 to collect tax on sales made into the state.
Learn more about this program from the State of Alabama Department of Revenue.
Teresa Farnsworth is the VP / Account Manager at Zip2Tax. She works closely with her clients to make sure they have just what they need to collect the right amount of sales or use tax in the U.S. and Canada. Questions? Chat with Teresa on the Web site, the Subscriber User Portal, or call her direct line; 866-492-8494.
Comments will be approved before showing up.
Our blog is a treasure trove of information, featuring detailed articles on rate changes, legislative updates, and practical guidance to keep your business ahead in tax compliance.
Subscribe now to receive crucial updates on sales tax rates, tax compliance insights, and the latest developments in tax legislation affecting businesses in the U.S. and Canada.