On the off chance that your business is based out-of-state, yet you have sales tax nexus in Arizona, (for example, through offering on Amazon FBA), this may influence the way you register for and collect sales tax in the state.
Arizona’s present sales tax administration intricate. Not just are sellers required to register and file with the state of Arizona, in several cases they are required to register with individual localities. Listed below are the individual localities that regulate their own sales tax:
For sellers who live in Arizona, this is genuinely simple. Arizona is a “starting point based” state for in-state sellers. This simply implies that an Arizona-based seller charges the sales tax rate at his or her location inside Arizona.
In-State Seller Example: A who sells on eBay out of her home in Sedona ought to enlist for an Arizona state deals duty grant and a Sedona license. When it comes time to file sales tax, she files with the state of Arizona and the city of Sedona. (I told you know this was confusing.)
Yet out-of-state sellers with sales tax nexus in Arizona run into an issue. For out-of-state sellers, Arizona is a destination-based sales tax state. This implies that out-of-states sellers should charge sales tax at the local rate of the buyer inside Arizona. Much more complicated, sellers must register for a sales tax permit with the condition of Arizona, as well as any of the individual cities to which you sell.
Out-of-State Seller Example: A seller who lives in California yet has sales tax nexus in Arizona because of having items put away in the Amazon fulfillment center in Phoenix (Maricopa County), is required to charge the sales tax rate at the location of her buyer. Thus, on the off chance that she sells to buyers in Tucson, Tempe and Glendale, then the condition of Arizona requires her to register for a sales tax permit and file sales tax with each of those individual locations. Ouch, a ton of paperwork and bother.
To comply with the law as Arizona now interprets it would mean out-of-state sellers who want to be extremely cautious would need to register for one Arizona states sales tax permit and 15 city sales tax permits.
Arizona was to change this excessively complex system by 2015. Nonetheless, in December 2014, they declared that – because of technical troubles – the Arizona sales tax simplification would not be executed until 2016
At the point when the changes are executed, sellers with sales tax nexus in Arizona might be required to register for one sales tax permit: the one from the state of Arizona. There will be no all the more “non-program” cities who control their own sales tax and require out-of-state sellers to go through hoops.
This system is unfair to online sellers who are simply attempting to make the best decision. These licenses cost cash (ex: A Phoenix deals duty permit is $50), and that quickly adds up. Besides, making sellers go through hoops just to sell in your state is excess to ask.
As always, it’s dependent upon you as a seller to collect and remit sales tax. In the event that you require guidance on Arizona, let us help or give the Arizona Department of Revenue a call to get some information about your particular circumstance.