Arizona Sales Tax Guide for Businesses

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Arizona Sales Tax Guide for Businesses

Find out what are the things that are taxable, how to file business tax and many more.

Arizona Sales Tax Guide for Businesses

 

We composed this guide for online sellers who need to know whether they even need to deal with sales tax in Arizona, and provided that this is true, how best to handle the business charge circumstance in the Grand Canyon State.

Read this and you’ll know the following:

  • Do you or don’t you have to gather Arizona deals charge?
  • Which clients do you gather from?
  • What amount do you gather?
  • What do you do with every one of the business impose you’ve gathered?
  • Far more than you most likely at any point needed to think about Arizona sales tax

Remember: “Sales Tax” in Arizona is quite not the same with other state. They allude to the taxes you, as a trader, should gather and dispatch as “transaction privilege tax” and “use tax.”

  • Transaction privilege tax (TPT) a tax on the benefit of having a business in Arizona. Much like sales tax in whatever is left of the nation, TPT is gathered by shippers and dispatched back to the state in view of a percentage of a sale.
  • Use tax now and again, out-of-state merchants who have sales tax nexus in Arizona are required to gather and dispatch tax from purchasers in Arizona. In the event that Arizona purchasers don’t pay sales tax to the trader for an out-of-state deal, they are required by Arizona law to transmit the use tax to the state.

Do you have sales tax nexus in Arizona?

Great news! You just need to start pondering Arizona sales tax on the off chance that you have sales tax nexus in Arizona.

“Sales tax nexus” is only a favor method for saying “significant presence” in a state.

Arizona considers a dealer to have  sales tax nexus in the state on the off chance that you have any of the accompanying in the state:

  • An office or place of business
  • A worker introduce in the state for over 2 days for every year
  • Products in a distribution center
  • Responsibility for or individual property
  • Conveyance of stock in Arizona in vehicles claimed by the citizen
  • Self employed entities or different delegates in Arizona for over 2 days for each year

Is what you’re selling even taxable?

You’ve most likely read this far on the grounds that you understood you have deals impose nexus in Arizona. Your subsequent stage is to decide whether what you’re offering is even taxable.

Services in Arizona are for the most part not taxable. So in case you’re an independent essayist or a handyman, you’re in fortunes and you don’t need to stress over sales tax. In any case, look out – if the administration you give incorporates making or assembling an item, you may need to manage the business charge on items.

Tangible items are taxable in Arizona , with a couple of special cases. These exemptions incorporate certain staple goods, physician endorsed prescription and medicinal gadgets, and hardware and synthetic concoctions utilized as a part of innovative work.

So on the off chance that you offer toys, at that point charge sales tax to your Arizona clients.

In any case, in case you’re a visual creator, don’t charge sales tax to your Arizona clients.

On the off chance that you have deals assess nexus in Arizona and your items are taxable, your subsequent stage is to enroll for a sales tax permit.

 

How to register for a sales tax permit in Arizona?

It is a must to apply for an Arizona sales tax permit for the sellers with sales tax nexus. Remember that Arizona is strict in collecting taxes under their name without permit.

Critical note on Arizona sales tax permits (AKA TPT assess licenses): Under the Arizona Model Cities Tax Code, online vendors are required to enlist for a sales tax permit in every city into which they make a deal. Furthermore, this enrollment can cost anyplace from allowed to up to $50 per city.

Contact us for more information

 

How to collect sales tax in Arizona

So you’ve discovered that you have sales tax nexus in Arizona and what you’re offering is taxable. Also, you’re good to go and enlisted for your Arizona sales tax permit(s).

The subsequent stage is to decide how much sales tax to gather.

The sales tax rate you gather in Arizona relies upon whether you are situated in Arizona or out-of-state.

 

How to collect sales tax in Arizona if you are based in Arizona

Arizona is a  origin-based sales tax state. So in the event that you live in Arizona, gathering sales tax is genuinely simple. Gather sales tax at the tax rate where your business is found.

Sample: You live and maintain your business in Sedona, AZ, in the 86336 postal division. The sales tax rate in Sedona is comprised of the 5.6% Arizona sales tax rate, the 1.3% Coconino County rate and the 3% Sedona rate, for a sum of 9.9%. You would charge the greater part of your Arizona clients, regardless of where in the state they live, that 9.9% sales tax rate.

In the event that you have in excess of one area in Arizona, at that point you would base the sales tax rate you charge on the purpose of birthplace of your deal.

Here is a table of the most populated urban communities in Arizona, alongside add up to consolidated tax rate:

 

RankCityPopulationCountyTotal Sales Tax
1Phoenix1,679,243Maricopa8.600%
2Tucson535,236Pima8.600%
3Mesa497,275Maricopa8.050%
4Scottsdale260,189Maricopa7.950%
5Chandler254,773Maricopa7.800%
6Glendale251,269Maricopa9.200%
7Gilbert246,601Maricopa7.800%
8Tempe191,588Maricopa8.100%
9Peoria171,649Maricopa8.150%
10Surprise137,717Maricopa8.500%
11Yuma97,284Yuma8.412%
12Avondale85,199Maricopa8.800%
13Goodyear82,016Maricopa8.800%
14Flagstaff74,201Coconino8.951%
15Buckeye70,605Maricopa9.300%
16Casa Grande57,970Pinal8.700%
17Lake Havasu City54,647Mohave7.850%
18Maricopa48,487Pinal8.700%
19Marana46,522Pinal9.200%
20Prescott Valley45,204Yavapai9.180%

 

Should you collect sales tax on shipping charges in Arizona?

For whatever length of time that you independently express the transportation charges on your bill to your client, you don’t need to charge sales tax on delivery.

In any case, on the off chance that you incorporate delivering in the cost of the item you offer the client, at that point shipping is considered piece of the taxable exchange and Arizona proclaims that you should gather sales tax on shipping.

 

When are Arizona sales tax returns due?

When you file and pay Arizona sales tax relies upon two things: your allotted recording recurrence and your state’s expected dates.

 

How often will you file sales tax returns in Arizona?

States allot you a filing frequency when you enroll for your sales tax permit (or, on account of Arizona, your TPT allow). In many states, how regularly you record sales tax depends on the measure of offers charge you gather from purchasers in the state.

In Arizona, you will be required to document and dispatch sales tax either month to month, quarterly or every year.

How regularly you are required to file sales tax in Arizona takes after this general run the show:

Average Monthly Tax LiabilityFiling Frequency
$666.67 and upMonthly
$166.67 to $666.66Quarterly
$0 to $166.66Annual

 

Arizona electronic sales tax return are constantly due the last day of the month following the detailing time frame. In the event that the documenting due date falls on an end of the week or occasion, sales tax is for the most part due the following business day.

 

2018 Arizona Monthly Sales Tax Filing Due Dates

Taxable PeriodDue Date
JanuaryFebruary 27, 2018
FebruaryMarch 29, 2018
MarchApril 27, 2018
AprilMay 30, 2018
MayJune 28, 2018
JuneJuly 30, 2018
JulyAugust 30, 2018
AugustSeptember 27, 2018
SeptemberOctober 30, 2018
OctoberNovember 29, 2018
NovemberDecember 28, 2018
DecemberJanuary 30, 2019

 

2018 Arizona Quarterly Sales Tax Filing Due Dates

Taxable PeriodDue Date
Q1 (Jan-March)April 20, 2018
Q2 (April-June)July 20, 2018
Q3 (July-Sept)October 22, 2018
Q4 (Oct-Dec)January 22, 2019*

 

2018 Arizona Annual Sales Tax Filing Due Dates

Taxable PeriodDue Date
2018January 29, 2019*

 

How to file sales tax in Arizona

When it comes time to file sales tax in Arizona you should complete three things:

  • Calculate how much sales tax you owe
  • File a sales tax return
  • Make a payment

We’ll walk you through these means.

 

How to file and pay sales tax in Arizona

You have two alternatives for filing and paying your Arizona sales tax:

  1. File online – File online at the Arizona Department of Revenue. You can remit your payment through their online system.
  2. File by mail – You can use Form TPT-EZ if you live in-state, or TPT-2 if you live out-of-state and file and pay through the mail, though you must file and pay online if your tax liability in the previous year was $1,000,000 or more.

 

Other facts you should know about Arizona sales tax filing

There are a couple of more things you should think about sales tax in Arizona:

Penalties:

  • Late Filing Penalty 4.5% per month of the tax imposed
  • Late Payment Penalty 1% of the unpaid tax bill for each month of delinquency

Other penalties for fraud or serial offenses include higher penalties and even criminal charges.

 

“Zero returns”:

Sellers in Arizona are required with a sales tax permit file a sales tax return on your due date even if you don’t have any sales tax to report or pay.

 

Discounts:

Numerous states comprehend that gathering sales tax is a troublesome weight on shippers, and will give a discount to help lighten a portion of this weight. In Arizona, as long as the business assess is paid on time, a markdown is accessible equivalent to 1% of offers impose due and isn’t to surpass $10,000 per logbook year.

Furthermore, that is it. You’ve aced Arizona sales tax filing! Since sales tax is off the beaten path, you can return to what you specialize in – maintaining your business.

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