Alabama Sales Tax Filing Guide for Businesses
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.
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).
Alabama Sales Tax Return Due Dates
Returns are automatically due on the 20th of each month,
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
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.
Special Notes for Amazon Sellers
Amazon does not have a warehouse here.