Alabama Sales Tax Information
Alabama requires registration for a sales tax permit to purchase items tax-free for resale unless you are a dropshipper. Dropshippers can use their home-state exemption certificate. Remote resellers must collect and remit taxes to Alabama if the sale is taxable. Alabama does not accept out-of-state seller IDs.
To get an Alabama resale certificate, complete Form ST-EX-A1. A seller’s permit also serves as a resale certificate. Firms sending items to Alabama must collect sales tax after obtaining a certificate. The permit identifies you as collecting sales tax. Selling goods requires a permit and maybe even services.
Present certificates below for tax-free Alabama purchases:
- Alabama sales tax permit
- Form ST: EX-A1
- MTC Uniform Sales & Use Tax Resale Certificate
Non-Acceptance of Resale Certificates
Pennsylvania and Texas do not allow non-resident resale certificates.
Sales Tax in Washington State
Washington requires most businesses making retail sales to register for a seller’s permit to collect sales tax. Retail sales tax is Washington’s main tax revenue source. Should you collect sales tax on shipping charges in Washington? Yes, if the product being shipped is taxable, then the shipping charges are also taxable.
To complete the tax-exempt form, you will need to provide your sales tax license number. It is strongly recommended that all new businesses file for their sales tax permits through an online application as it is the easiest and fastest way.
If you sell items to a business with a resale certificate, do not collect sales tax. Instead, that business will collect sales tax from its customers. Sales tax exemption certificates legally let buyers avoid paying sales tax.
Remote sellers must collect and remit taxes to Washington if the sale is taxable once registered. Economic nexus requires out-of-state retailers to collect sales tax after meeting a certain level of sales transactions or revenue within the state without needing a physical presence.
Exempt sales may still count toward a state’s economic nexus threshold. Misunderstanding a purchaser’s status or assuming government sales are exempt can result in taxable sales being improperly treated as exempt. Sales to the federal government are exempt from sales tax. However, sales to federal entities not owned by the U.S. may be taxable.