Alabama Sales Tax Guide

A step-by-step guide to understanding Alabama sales tax rules.

Overview

Collecting sales and use tax from Alabama consumers can be confusing, time consuming, and error prone. In this guide we'll walk you through the things you need to know to ensure your small business is compliant with the Alabama Department of Revenue.

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Table of Contents

1
An Overview of Alabama Sales Tax

Understanding where, when, and how to collect Alabama sales tax is no easy task. Whether you're collecting tax dollars at the point-of-sale or collecting Alabama internet sales tax, our guide will break down the sales tax compliance process into focused, easy to understand chapters.

2
Alabama Sales Tax Nexus

Understanding whether you need to collect, file, and remit Alabama sales tax depends on a concept known as nexus. In this chapter, we'll take a look at situations that may trigger in Alabama such as storing inventory in the state, hiring state residents, and click-through nexus.

3
Registering to Collect Alabama Sales Tax

You'll want to get started establishing Alabama sales tax compliance by understanding how to get your business registered for the necessary sales tax permit. We'll walk you through the process and help you understand when is the best time to get your business registered in Alabama.

4
Collecting Sales Tax in Alabama

After you've registered your business with the Alabama Department of Revenue, you're ready to begin collecting sales tax. We'll review topics such as Alabama sales tax exemptions, sales tax holidays, and determining state and local sales tax rates.

5
Filing Alabama Sales Tax Returns

Now that you're business is registered with the Alabama Department of Revenue and collecting sales tax, you'll need to file tax returns in an ongoing basis. We'll help you gain a deep understand of the process of filing sales tax returns. Topic covered include filing frequencies, filing on behalf of a client, and what happens if you file late.

6
Alabama Sales Tax Filing Due Dates

Every business that registers to collect Alabama sales tax will be assigned a filing frequency. In this chapter, we'll take a look at the filing frequencies and associated due dates supported by the Alabama Department of Revenue.

7
Late Filing Penalties, Fines & Interest

We know, mistakes happen and, from time to time, sales tax filing deadlines are missed. In this chapter, we'll take a look at what penalties you may be required to pay should you miss your assigned Alabama sales tax filing date. We'll also consider interest charges for late sales tax payments.

8
Sales Tax on Alabama Shipping & Handling

The rise of the internet economy has made it possible for buyers around the world to order your products. Did you know shipping and handling may be taxable? In this chapter we'll cover sales tax on shipping and handling in Alabama. You'll want to pay attention here because there are some important details pertaining to invoicing you'll want to understand.