What Every Arizona Business Should Know About SALES TAX
What is the Sales Tax Rate in Arizona?
Arizona sales tax is a blended rate of State, County and city. Click here to find your Arizona tax rate.
What is Sales Tax in Arizona?
Although commonly referred to as a sales tax, the Arizona Transaction Privilege Tax (TPT) is actually a tax on a vendor for the privilege of doing business in the state. Various business activities are subject to transaction privilege tax and must be licensed.
Are All Goods and Services Taxable?
How Do I Know What’s Taxable and What’s Not?
This link can help you determine what is taxable and what isn’t in Arizona.
Who Pays Sales Tax?
Consumers pay sales tax. Merchants do not pay sales tax out of their own pockets. It’s commonly referred to as a pass through tax.
What Am I Responsible For?
You are required to collect sales tax, hold it secure and send it to the State on-time and in-full.
When Is My Sales Tax Payment Due in Arizona?
Sales Tax in Arizona is due on or before the due date. Click here for a list of due dates.
How Do I Know How Much Sales Tax to Charge?
Sales tax rates in Arizona are a combination of the state rate plus a local county and city tax rate. Click here to find your sales tax rate. The final and definitive answer is always the sales tax rate posted on State Department of Revenue website. Rates posted on the web are often not up-to-date and incorrect. It’s always the merchant’s responsibility to charge the correct sales tax rate.
Who Gets the Sales Tax Money?
In Arizona all sales tax, State and County and City, gets paid directly to the State.
How Do I Manage Tax Exempt Sales?
Tax exempt organizations such as schools and religious organizations are often exempt from sales tax. They are required to give you copy of their “TAX EXEMPT CERTIFICATE” at the time of the sale and you are required to keep this certificate on file. Failing to do so may result in you paying the sales tax out of your own pocket if you have a sales tax audit.
What if I Forget to Pay or Spend the Money and Can’t Pay?
Arizona has severe penalties for missing tax payments. You can find the penalties for late payments here. If sales tax goes unpaid, states will seize the assets of the business or owner and auction them off to pay the debt. In extreme cases owners will be prosecuted and sent to jail. Even if the business closes, sales tax is a personal liability that will follow the owner until paid.Arizona Department Of Revenue
Can I Get Help Online With My Arizona Sales Tax?
Yes! The Arizona Department of Revenue has a live chat feature on its www.AZDOR.gov and www.AZTaxes.gov websites. They will provide customers with answers to general questions and offer guidance. ADOR Live Chat will be available for inquiries, Monday through Friday from 8 a.m. to 5 p.m.