Alabama ~ Sales and Use Tax: Rule Adopted on Requirements for Certain Out-of-State Sellers Making Significant Sales Into Alabama

The Alabama Department of Revenue has adopted a new rule regarding sales and use tax requirements for certain out-of-state sellers making significant sales into Alabama, applicable to all transactions occurring on or after January 1, 2016. Specifically, the rule provides that notwithstanding the provisions of Rule 810-6-2-.90.01, Seller’s Responsibility to Collect and Pay State Sales and Use Tax, out-of-state sellers who lack an Alabama physical presence but who are making retail sales of tangible personal property into the state have a substantial economic presence in Alabama for sales and use tax purposes and are required to register for a license with the department and to collect and remit tax pursuant to §40-23-67, Code of Alabama, when: (a) the seller’s retail sales of tangible personal property sold into the state exceed $250,000 per year based on the previous calendar year’s sales; and (b) the seller conducts one or more of the activities described in §40-23-68, Code of Alabama.

Sellers may satisfy these requirements by one of the following methods: (a) using the collecting, reporting and remitting provisions of Article 2, Chapter 23 of Title 40, Code of Alabama, or (b) using the collecting, reporting and remitting provisions created by the Simplified Sellers Use Tax Remittance Act codified at §§40-23-191 through 40-23-199, Code of Alabama.

Rule 810-6-2-.90.03, Alabama Department of Revenue, effective October 22, 2015, applicable on or after January 1, 2016

 

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Wolters Kluwer Tax and Accounting

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