Alabama Sales Tax Filing Guide for Businesses

Guide Sections

Fast Facts

Nexus Laws

How to File a Tax Return

How to Get a Tax Permit

Filing Frequency

Return Due Dates

Sales Tax Holidays

Notes for Amazon Sellers

Fast Facts

Return Location: Online

Has Local Filings: Yes

Sales Tax Rate: 4% plus local taxes

Contact Information: Visit their website or call 334-242-1490  for general info or 1-866-576-6531 for paperless filing.

How is Tax Calculated?: Based on the destination address of the package.

Are Services Taxable?: Generally no, but is imposed for Lodgings, Rentals, Mobile Communications, Utility Services, Pharmaceutical Providers, Contractors, and Nursing Homes.

Nexus in Alabama

What Creates Nexus: From the Alabama DOR’s Website: “A retail vendor has “nexus” in Alabama if they have a physical presence in Alabama, such as a retail store, warehouse, inventory, or regular presence of traveling salespeople or agents, or has established remote entity nexus.”

eCommerce Nexus?: There are no special laws that create nexus for online sellers in Alabama.

How to FIle a Sales Tax Return in Alabama

Online Only: Alabama requires that you file a sales tax return using My Alabama Taxes Online (MAT). Alabama does require that $0 returns be filed.

We will be adding an instructional video here at a later date. 

How to Get a Sales Tax Permit

View our full guide:  How to Register for a Sales Tax Permit in Alabama Quickly

Sales Tax Permit Cost: Free. Alabama does not charge a fee to register for a sales tax permit and does not require a security deposit.

Form Location: Online Application

Renewal Needed?: No, you do not need to renew your sales tax permit in Alabama.

Alabama Sales Tax Filing Frequency

Monthly: Sales tax returns are due monthly, however, you may elect to file less frequently based on average tax liability.

Quarterly: File your sales tax returns quarterly if your sales tax liabilities average less than $200 per month during the preceding calendar year.

Annually: File your sales tax returns annually if your sales tax liabilities in the preceding year was $10 or less.

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Discounts: A discount is allowed if the return is submitted before the 20th. The discount consists of 5% on the first $100 of tax due, and 2% of all tax over $100. The monthly discount may not exceed $400

Late Fees: Late sales tax filings will incur a penalty of 10% of the tax due, or $50 (whichever is greater).

Source.

Alabama Sales Tax Return Due Dates

Returns are automatically due on the 20th of each month, however you may elect to file less frequently based on your sales volume.

Monthly Filing Frequency

January Collection — February 20th

February Collections — March 20th

March Collections — April 20th

April Collections — May 20th

May Collections — June 20th

June Collections — July 20th

July Collections — August 20th

August Collections — September 20th

September Collections — October 20th

October Collections — November 20th

November Collections — December 20th

December Collections — January 20th (following year)

Quarterly Filing Frequency

Q1: Jan – March Collections — April 20th

Q2: April – June Collections — July 20th

Q3: July – September Collections — October 20th

Q4: October – December Collections — January 20th

Annual Filing Frequency

January – December Collections — January 20th

You can read more about Alabama’s sales tax return due dates here.

Alabama Sales Tax Holidays

Severe Weather Preparedness from February 23rd to 25th. You can view a list of exempt items by clicking here.

Back to School Sales Tax Holiday from July 20th to 22nd. You can view a list of exempt items by clicking here.

Learn more about sales Alabama’s sales tax holidays here. 

Special Notes for Amazon Sellers

Amazon does not have a warehouse here.