Sellers use tax is imposed on the retail sale of tangible personal property sold in Alabama by businesses located outside of Alabama which have no inventory located in Alabama, but are making retail sales in Alabama via sales offices, agents, or by any significant recurring contact or “nexus” with Alabama.
Local Sellers Use Tax
The local sellers use tax is due monthly, with returns and remittances to be filed on or before the 20th day of the month for the previous month’s sales. However, pursuant to Section 40-23-7, Code of Alabama 1975, you may request quarterly filing status if you have a tax liability of less than $2,400.00 for the preceding calendar year.
You may request bi-annual filing if you have a tax liability of less than $1,200 for the preceding calendar year. You may also request bi-annual filing if you make sales during no more than two thirty consecutive day periods during the preceding calendar year. You may request annual filing status if the tax liability for the entire preceding calendar year is less than $600.00.
You may also request annual filing if you make sales during no more than one thirty consecutive day period during the preceding calendar year. Changes to the filing status can only be requested each year before February 20th in order to file quarterly, bi-annually or annually for that calendar year.
No discounts apply for timely filing. Note: If paying via EFT, the EFT payment information must be transmitted by 4:00 p.m. (Central Standard Time) on or before the due date, to be considered timely paid.
What is the Simplified Sellers Use Tax Program?
Legislative Act 2015-448, entitled the “Simplified Seller Use Tax Remittance Act,” allows eligible sellers to participate in a program to collect, report and remit a flat eight percent (8%) sellers use tax on all sales made into Alabama. An eligible seller is one that sells tangible personal property or a service into the State of Alabama from an inventory or location outside the state but does not have a physical presence in the State of Alabama and who is not otherwise required by Sections 41-4-116 or 40-23-190, Code of Alabama 1975 to collect tax on sales made into the state. Learn more about this program.