Skip to content
Simplified Sellers Use Tax Program
- The State of Alabama created the simplified sellers use tax program under Statute ยง 40-23-192. This program allows eligible sellers to collect, report and remit a flat eight percent sellers use tax on all sales made into Alabama. Amazon and affiliates collect this tax on sales to Alabama customers for the Alabama Department of Revenue.
Marketplace Facilitators and Tax Collection
- What is a marketplace facilitator? Marketplace Facilitators play a role in sales tax collection and reporting. Qualified Marketplace Facilitators lack nexus or physical presence in Alabama. These facilitators qualify to report tax collected on their Alabama sales through the program.
Use Tax in Alabama
- The Alabama Use Tax complements the regular sales tax. It ensures purchases made outside of Alabama are not exempt from sales tax. Instead of taxing sales outside Alabama’s jurisdiction, the Use Tax taxes use or consumption of property bought in other states with lower sales tax rates and brought into Alabama.
Sales Tax Requirements
- When a business creates a physical nexus, it must collect Alabama sales tax. A physical nexus means having a physical presence or engaging in enough activities within Alabama to require collecting and paying sales tax.
- Some services in Alabama have sales tax. Alabama requires businesses to collect sales tax on the sale of digital goods or services.
- If you need to charge sales tax on some goods and services, register for a seller’s permit. This allows your business to collect sales tax for state and local governments.
