Comprehensive Guide to Alabama Sales and Use Tax: Rates, Nexus, Exemptions, and Compliance

• Alabama sales tax is a privilege tax on retail sales of tangible goods within the state.
• Sales tax is collected from consumers and remitted to the Alabama Department of Revenue.
• Use tax applies when sales tax is not collected, often for out-of-state purchases.
• General state sales and use tax rate is 4 percent, with variations for specific sectors.
• Local taxes are also imposed by counties and municipalities, adding complexity.
• Churches and non-profits generally do not qualify for tax exemptions in Alabama.
• Nexus rules determine tax obligations for businesses with significant connections to the state.
• Penalties exist for non-compliance with sales and use tax requirements.

Source: vatabout.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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