Understanding Arizona Transaction Privilege Tax and Use Tax: A Comprehensive Guide for E-commerce Sellers

• Arizona has a Transaction Privilege Tax (TPT) instead of a sales tax
• Sales tax is imposed on purchasers in most states, while TPT is imposed directly on the seller in Arizona
• Use tax is divided into Consumer’s Use Tax and Retailer’s Use Tax
• Consumer’s Use Tax is paid by the person who uses the property, while Retailer’s Use Tax is collected by the seller
• Use tax is meant to recover tax on property purchased outside the state or for which sales tax was not collected

Source: taxjar.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.

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