Remote Sellers in Alabama
- Apr 12, 2016 | Gail Cole
The year 2016 brought new sales and use tax reporting requirements for out-of-state sellers making sales in Alabama, but also simplified use tax reporting for certain remote sellers. Newly enacted legislation now allows certain remote sellers who establish physical presence in Alabama to take advantage of the simplified use tax reporting.
Beginning January 1, 2016, out-of-state sellers that solicit sales in Alabama and earn more than $250,000 per year from Alabama sales may be required to register with the state and collect and remit sales or use tax. Such sellers may take advantage of the Simplified Sellers Use Tax Remittance Act, which allows remote sellers to report all Alabama sales using one rate and a single jurisdiction (no exemptions may be claimed). Read more about the new requirements for remote sellers in Alabama.
Senate Bill 233, effective April 4, 2016, permits eligible sellers to continue to participate in the Simplified Sellers Use Tax Remittance Act even after a physical presence in Alabama has been established, provided they had been participating in the program for at least six months prior to establishing physical presence.
The simplest way to simplify remote sales tax compliance is to use sales tax software (SaaS). Learn how it works.