California Sales Tax Guide for Businesses
Fast Facts
Return Location: Online or Paper Form. Online returns must be submitted for tax liabilities over $1,000,000.
Has Local Filings: Yes. Paper filers using the TPT-2 only need one return for all localities.
Sales Tax Rate: 5.6% plus local rates. See Arizona’s tax rate table here.
Contact Information: Visit their website or call 1-800-352-4090 for their sales tax hotline. Press option 1 and then 9. Make sure they know you’re a business, not an individual. They should transfer you to their business tax line.
How is Tax Calculated?: The state, county, and city tax rates are based on the origin address of the sale.
Are Services Taxable?: Many services are taxable within Arizona. Click here to see which services are taxable in Arizona.
Nexus in Arizona
What Creates Nexus: A business is considered to be “engaging in business in Arizona” if they:
- Employees present in the state conducting business on behalf of the company
- Ownership or lease of real or personal property in Arizona
- Maintenance of an office or place of business in Arizona
- Delivery of merchandise into Arizona on vehicles owned or leased by the taxpayer
- Independent contractors or other non-employee representatives present in Arizona for the purpose of establishing and maintaining a market for the taxpayer
Read more about Arizona Nexus on the Arizona Department of Revenue website.
eCommerce Nexus?: There are no special laws that create nexus for online sellers in Arizona.
How to FIle a Sales Tax Return in Arizona
Online: You may pay Arizona’s Transaction Privilege Tax online at AZTaxes.gov.
Paper Form: You may file using the TPT-2 if your estimated annual liabilities are less than $1,000,000.
We will be adding an instructional video here at a later date.
How to Get a Sales Tax Permit in Arizona
View our full guide: How to Register for a Sales Tax Permit in Arizona Quickly
Where to Register: Register Online or by filling out Form JT-1
Registration Fee: Arizona charges $12 per locationto process sales tax permit registrations. State and counties charge between $2 and $50 per location to register your business for local sales tax permits. You can register for a local permit on the same form.
Renewal Required?: Yes — the license is valid for one calendar year, and businesses must renew annually by January 1st. There is no state renewal fee, but local fees may apply. Read more here.
Arizona Sales Tax Filing Frequency
Your TPT filing frequency in Arizona is based on your estimated annual combined tax liabilities.
Annual Filing: Less than $2,000 estimated annual combined tax liability
Quarterly Filing: $2,000 - $8,000 estimated annual combined tax liability
Monthly Filing: More than $8,000 estimated annual combined tax liability
Seasonal Filing: 8 months or less
To update your filing frequency, submit the Business Account Update form to the Department of Revenue. You can read more on the Arizona Department of Revenue website.
—
Discounts: Arizona allows an on-time filing discount of 1%, up to $10,000 per business entity for a calendar year.
Late Fees: Arizona has one late fee for the return being late, and another for the payment being late. The late return penalty is 4.5%, and the late payment penalty is 0.5%. Additional penalties may be added, up to 25% of the tax due. For more information, see page 1 on the TPT-2 return instructions.
Arizona Sales Tax Return Due Dates
Arizona’s Transaction Privilege Tax is typically due on the 20th of each month. Read more on Arizona’s website.
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 22nd
Q4: October - December Collections — January 22nd
Annual Filing Frequency
January - December Collections — January 22nd (following year)
Arizona Sales Tax Holidays
Arizona does not currently have any sales tax holidays.
Special Notes for Amazon Sellers
According to TPR 16-3, marketplaces are responsible for collecting and remitting sales tax on behalf of sellers. That being said, Amazon is not currently collecting and remitting on behalf of sellers. We have contacted the Arizona TPT commission to ask for clarification on who is responsible for collecting and remitting sales tax.
In the meantime, we recommend that you collect and remit sales tax in Arizona if your inventory is being stored there.
We can help you determine where Amazon is storing your inventory. Contact us to learn more.
Recent Comments