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



Wolters Kluwer Tax and Accounting

Wolters Kluwer Tax and Accounting is a leading provider of software solutions and local expertise that helps tax, accounting, and audit professionals research and navigate complex regulations, comply with legislation, manage their businesses and advise clients with speed, accuracy and efficiency. Wolters Kluwer Tax and Accounting is part of Wolters Kluwer N.V. (AEX: WKL), a global leader in information services and solutions for professionals in the health, tax and accounting, risk and compliance, finance and legal sectors. We help our customers make critical decisions every day by providing expert solutions that combine deep domain knowledge with specialized technology and services. Wolters Kluwer reported 2016 annual revenues of €4.3 billion. The company, headquartered in Alphen aan den Rijn, the Netherlands, serves customers in over 180 countries, maintains operations in over 40 countries and employs 19,000 people worldwide. Wolters Kluwer shares are listed on Euronext Amsterdam (WKL) and are included in the AEX and Euronext 100 indices. Wolters Kluwer has a sponsored Level 1 American Depositary Receipt program. The ADRs are traded on the over-the-counter market in the U.S. (WTKWY).

All stories by: Wolters Kluwer Tax and Accounting