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Arkansas Sales Tax Guide for Businesses

Fast Facts


Return Location:
Online

Has Local Filings: Yes

Sales Tax Rate: 6.5% plus local rate

Contact Information: Visit their website or call 501-682-7104 for their sales tax hotline.

How is Tax Calculated?: Arkansas state taxes are based on the origin of the sale, and Arkansas local taxes are based on the point of delivery of the sale.

Are Services Taxable?: Services are sometimes taxable in Arkansas. Read more here.

 

Nexus in Arkansas

 

What Creates Nexus: A business is considered to be “engaging in business in Arkansas” (and therefore owe sales tax) if they:

  • Have an office or any other place of business (either leased or owned) within the state’s boundaries
  • Have real or personal property within Arkansas
  • Have any agency or warehouse in the state
  • Make repairs or provide maintenance in the state
  • Have affiliates that are subject to Arkansas sales and use tax jurisdiction and meet one of the following conditions:
    • The seller sells a similar line of products as the affiliated person and sells the products under the same or a similar business name;
    • The affiliated person uses its in-state employees or in-state facilities to advertise, promote, or facilitate sales by the seller to consumers;
    • The affiliated person maintains an office, distribution facility, warehouse or storage place, or similar place of business to facilitate the delivery of property or services sold by the seller to the seller’s business;
    • The affiliated person uses trademarks, service marks, or trade names in the state that are the same or substantially similar to those used by the seller; or
    • The affiliated person delivers, installs, assembles, or performs maintenance services for the seller’s purchasers within the state. Read more here.

eCommerce Nexus?: Arkansas does have some laws that create nexus for online sellers, specifically the “click-through” nexus. If there is no affiliated person, a seller is considered to be selling property or taxable services in Arkansas if they enter into an agreement with an Arkansas resident in which the resident directly or indirectly refers potential purchasers to the seller – through an internet link or otherwise – for commissions or other consideration (this only applies if cumulative sales to Arkansas purchasers who are referred to the seller exceed $10,000 in the preceding 12 months). Read more here. 

 

How to File a Sales Tax Return in Arkansas

Online: Arkansas recommends that you file a sales tax return using the Arkansas Taxpayer Access Point (XML upload is also an option but is not recommended)

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

 

How to Get a Sales Tax Permit

View our full guide:  Coming soon

Where to Register: Arkansas Taxpayer Access Point

Registration Fee: There is a $50 non-refundable registration fee

Renewal Required?: No, Arkansas does not require you to renew your sales tax permit.

Arkansas Sales Tax Filing Frequency

 

Arkansas has taxpayers file on a monthly, quarterly, or annual basis depending on their average monthly tax liability :

Monthly: For average monthly tax liabilities above $100

Quarterly: For average monthly tax liabilities between $25 to $100

Annually: For average monthly sales tax liabilities between $0 to $25.

Discounts: There is an early filing discount of 2% in Arkansas, with a maximum of $1,000. Read more here.

Late Fees: Late sales tax will incur a 5% fee of the monthly tax due. The maximum penalty is 35% of the unpaid tax. Read more here.

 

Arkansas Sales Tax Return Due Dates

California’s sales tax returns are typically due on the 20th of the following month. Read more on Arkansas’ website.

Monthly Filing Frequency

January Collection — February 20th

February Collections — March 20th

March Collections — April 20th

April Collections — May 21st

May Collections — June 20th

June Collections — July 20th

July Collections — August 20th

August Collections — September 20th

September Collections — October 22nd

October Collections — November 20th

November Collections — December 20th

December Collections — January 22nd (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 (following year)

Annual Filing Frequency

January - December Collections — January 22nd (following year)

 

Arkansas Sales Tax Holidays


Arkansas offers a “Back to School” tax holiday from August 4th-5th 2018. Read more here.

 

Special Notes for Amazon Sellers

Amazon does not have a warehouse in Arkansas.

Receive a complementary nexus study from our team.

You'll learn where you owe sales tax and what your historical liabilities are.

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Free Resource: The ULTIMATE Sales Tax Checklist

This guide breaks down the process of getting compliant in 5 simple steps.

 

This is a great resource if you're starting to figure things out on your own.

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