- Arizona has an economic nexus law that requires out-of-state businesses to collect and remit sales tax if they meet certain sales thresholds
- The economic nexus threshold in Arizona is having more than $100,000 in sales in the current or previous calendar year
- The law applies to businesses that sell taxable goods or services to customers in Arizona, regardless of physical presence in the state
- Failure to comply with the law can result in back taxes, fines, or other penalties
- The economic nexus law went into effect for out-of-state businesses on October 1, 2019
- Businesses must register for a sales tax permit and begin collecting and remitting sales tax if they meet the economic nexus threshold
- They must submit a completed Transaction Privilege Tax (TPT) License Application to the Arizona Department of Revenue to register for a sales tax permit
- Businesses must keep records of taxable sales, set up their transaction platforms to calculate sales tax accurately, file regular sales tax returns, and remit the collected sales tax to the Arizona Department of Revenue
- Businesses need to stay updated with any changes in filing guidelines or sales tax rates in the future.
Source: galvix.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
