Alabama: Sales Tax Handbook
How to get an Alabama Sales Tax License
In Alabama, most businesses are required to have a sales tax permit. This means that, if you are considering opening a new business or are beginning to make sales in Alabama for the first time, you will need to determine your business' permit requirements. The good news is that you can get an Alabama Sales Tax License and be ready to do business 3-5 days after you submit your application. This guide will help you learn how!
Who needs an Alabama Sales Tax License?
In Alabama, any individual or entity that engages in the retail sales of tangible personal property to the end consumer is responsible for applying for an Alabama Sales Tax permit and collecting tax to remit to the state. There are special requirements for businesses engaged in rentals, lodging, and the sales of certain items like cars and farm equipment or machines.
Businesses with a taxable presence within Alabama are considered to have sales tax nexus within the state. For more details on what constitutes a taxable presence, see sales tax nexus in Alabama.
How to get an Alabama Sales Tax License:
Once you apply for your Alabama sales tax permit, you will receive an account number which you will use when filing sales tax returns and communicating with the state. You will also receive a paper sales tax license, which must be displayed in your primary place of business.
You need the following information to apply for an Alabama Sales Tax License:
Personal identification info (SSN, address, etc.),
Business identification info (EIN, address, etc.),
Business entity type,
Date started doing business in Alabama
Alabama Sales Tax License Application Fee, Turnaround Time, and Renewal Info
You will need to pay an application fee when you apply for an Alabama Sales Tax License, and you will receive your permit 3-5 days after filing your application.
Application Fee: FREE
Turnaround Time: 3-5 days
Permit Renewals: No Renewals Needed
Apply For Your Alabama Sales Tax License Now:
Get Your Alabama Sales Tax License Online
You can easily acquire your Alabama Sales Tax License online using the My Alabama Taxes website. If you have quetions about the online permit application process, you can contact the Department of Revenue via the sales tax permit hotline (334) 242-1584 or by checking the permit info website .
Offline Alabama Sales Tax License Application Form
While generally slower than applying online, you can apply for a Alabama Sales Tax License for your business offline using Form COM-101, the "Department of Revenue Combined Registration/Application". Form COM-101 can be downloaded from the Department of Revenue here .
Mail Completed Form COM-101 To:Alabama Department of Revenue
Business Registration Unit
P.O. Box 327100
Montgomery, AL 36132-7100
What's Next? Now that you know how to apply for your Alabama Sales Tax License, learn how to collect and remit the Alabama sales tax.
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