Arizona: Sales Tax Handbook
How to file your sales taxes in Arizona
Once your business has an Arizona sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the Arizona government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In Arizona
If the seller has an in-state location in the state of Arizona, they are legally required to collect sales tax at the tax rate of the area where the seller is located, as Arizona is an origin based sales tax state.
If the seller's location is out of state, then the collection of sales tax is still done in the same way. The seller would still be required to charge the rate of sales tax from the seller's location.
Sales Tax Collection Discounts In Arizona
Arizona allows merchants to keep a small percentage of the sales tax they collect as a collection discount, which serves as compensation for the work required to comply with the Arizona sales tax regulations
The collection discount is that 1% of the tax due can be claimed as a credit, with a limit of ten thousand dollars per calendar year. This is the only collection discount in the state.
Your Arizona Sales Tax Filing Requirements
To file sales tax in Arizona, you must begin by reporting gross sales for the reporting period, and calculate the total amount of sales tax due from this period.
In the state of Arizona, all taxpayers are given two options for filing taxes. One is filing online at the Arizona Department of Revenue. Payment can also be remitted through this online system. You can also file manually through the mail, using Form TPT-1. However, it must be noted that if your tax liability from the previous year is greater than one million dollars, then you must file online.
Tax payers in Arizona should be aware of late penalties the state applies. The penalty for late filing is 4.5% per month of the tax imposed, and the late payment penalty is 1% of the unpaid tax for each month that the payment is late.
The state of Arizona requires that a seller who owns a sales tax permit files sales tax return on the required day, even if the tax return would have been "zeroed-out", and there is nothing to report.
Your Arizona Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 20th of the month following reporting period. For a list of this year's actual due dates, see our calendar of Arizona sales tax filing due dates.
Where To File Your Arizona Sales Tax Return:
Filing Your Arizona Sales Tax Returns Online
Arizona supports electronic filing of sales tax returns, which is often much faster than filing via mail.Amended sales tax returns cannot be filed electronically.
Arizona allows businesses to make sales tax payments electronically via the internet.Electronic payments are required to be made by taxpayers whose tax liability over the previous year was at least one million dollars.
You can process your required sales tax filings and payments online using the official AZTaxes website, which can be found here . You should have received credentials to access your AZTaxes account when you applied for your Arizona sales tax license.
Filing Your Arizona Sales Tax Returns Offline
While it is highly recommended that you file online using the AZTaxes website, it is possible to file your required sales tax reportings offline using Arizona Form TPT-1, which you can download and print here . Once you have completed your required reportings, you can mail it to the state at this address:Arizona Sales Tax Filing Address: Arizona Department of Revenue
PO Box 29010
Phoenix, AZ 85038-9010
Please note that if you file your Arizona sales taxes by mail, it may take significantly longer to process your returns and payments.
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