Avalara > Blog > Sales and Use Tax > Arizona and Hawaii expand electronic filing and payment requirements for sales tax in 2020

Arizona and Hawaii expand electronic filing and payment requirements for sales tax in 2020

  • Jan 6, 2020 | Gail Cole

efiling is better

More businesses are required to electronically file and remit Arizona transaction privilege tax (TPT) and Hawaii General Excise Tax (GET) in 2020 than in previous years.

Arizona

As of January 1, 2020, businesses with an annual TPT or use tax liability of $5,000 or more in Arizona must pay and file returns electronically. The threshold has dropped significantly: In 2019, electronic payments and returns were required for businesses with an annual TPT or use tax liability of $10,000 or more.

Failure to file electronically as required will incur a penalty of 5% of the tax due (a minimum penalty of $25), and 5% of the amount of payment made by check or cash.

Online payments and returns can be made only when a business is registered on AZTaxes.gov. Payment must be made by credit card, e-check, or Automated Clearing House (ACH) debit. Additional information.  

Hawaii

Taxpayers with annual GET liability of more than $4,000 must file periodic returns electronically starting July 1, 2020.

Additionally, annual GET returns must be filed electronically as of January 1, 2020.

Failure to file electronically as required will lead to a 2% penalty on the amount of tax due. However, an exception may be made if the failure to file electronically is due to “reasonable cause” and not neglect. Additional information.

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Gail Cole
Avalara Author Gail Cole
Gail Cole is a Senior Writer at Avalara. She’s on a mission to uncover unusual tax facts and make complex laws and legislation more digestible for accounting and business professionals.