- Alabama will change its sales tax treatment of certain credit card processing fees starting September 1, 2026.
- Previously, transaction or credit card processing fees added to a taxable sale could be included in the taxable sales price.
- Under the new law, certain credit card processing fees may be excluded from the taxable sales price.
- Businesses that separately charge payment processing fees should review invoicing, billing, and sales tax system configurations to reflect the new treatment.
Source: taxconnex.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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