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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.

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