Arkansas: Sales Tax Handbook
How to file your sales taxes in Arkansas
Once your business has an Arkansas sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the Arkansas 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 Arkansas
If the seller has an in-state location in the state of Arkansas, they are legally required to collect sales tax at the tax rate of the area where the buyer is located, as Arkansas is a destination 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 local rate of sales tax from the buyer's location.
Sales Tax Collection Discounts In Arkansas
Arkansas 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 Arkansas sales tax regulations
The collection discount is 2% of tax due, although the discount limit is one thousand dollars. This is the only collection discount in the state.
Your Arkansas Sales Tax Filing Requirements
To file sales tax in Arkansas, 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 Arkansas, all taxpayers are given two options for filing taxes. One is filing online at the Arkansas Taxpayer Access Point (sometimes called ATAP). Payment can also be remitted through this online system. You can also file manually through the mail, using Form ET-1. However, it must be noted that if your tax liability from the previous year is greater than twenty thousand dollars, then you are required to file online.
Tax payers in Arkansas should be aware of late penalties the state applies. The penalty for late filing is 5% of the tax due for each late month or fraction of a month, with a maximum compounded percentage of 35%. The late payment penalty works in exactly the same way, with 5% of the tax due for each late month or fraction of a month, and a maximum compounded percentage of 35%.
The state of Arkansas does not specifically require that any seller who owns a sales tax permit files sales tax return on the required day, so long as the tax return would have been "zeroed-out", and there is nothing to report.
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 local rate of sales tax from the buyer's location.
Your Arkansas 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 Arkansas sales tax filing due dates.
Where To File Your Arkansas Sales Tax Return:
Filing Your Arkansas Sales Tax Returns Online
Arkansas supports electronic filing of sales tax returns, which is often much faster than filing via mail.
Arkansas allows businesses to make sales tax payments electronically via the internet.
Electronic payments are required to be made by taxpayers only if their average monthly tax liability over the previous year is greater than twenty thousand dollars.
You can process your required sales tax filings and payments online using the official Arkansas Taxpayer Access Point (ATAP) website, which can be found here 
. You should have received credentials to access your Arkansas Taxpayer Access Point (ATAP) account when you applied for your Arkansas sales tax license.
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