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How To Register For An Arkansas Sales Tax Permit

How To Register For An Arkansas Sales Tax Permit

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How To Register For An Arkansas Sales Tax Permit

When starting a business in Arkansas, there are several registrations to take care of. The most common is the Arkansas sales tax permit, which is sometimes referred to as a retailer certificate, seller’s permit, sales tax license, sales and use tax number, or sales tax registration.

The sales tax permit is obtained through the Arkansas Department of Finance and Administration under the Gross Receipts Tax Law.

Keep reading to learn who needs a sales tax permit, what kinds of products and services are taxable, how to register, and what you need to do for reporting.

Related: Guide to starting a business in Arkansas

Who needs a sales tax permit in Arkansas?

A business must register as a retailer in Arkansas when:

  • A business has sales tax nexus. Nexus means having a physical presence in the state, such as having a physical location like a retail store or office or using a warehouse or fulfillment center to store inventory.
  • Selling items at craft shows, fairs, seminars, conventions, etc. in Arkansas
  • An Arkansas online business is selling taxable products to Arkansas residents
  • An out-of-state business (remote seller) sells over $100,000 in physical goods or has over 200 transactions annually to residents in Arkansas

What products and services are taxable in Arkansas?

Physical Products

There are a few exceptions, but almost all physical products are taxable when sold at retail in Arkansas. Common examples include:

  • General merchandise like furniture, appliances, and clothing
  • Titled or registered items like vehicles

Certain agriculture and contracting equipment are tax-exempt.

Digital Products

Digital products, with the exception of off-the-shelf software, aren’t taxable.

Services

Most services aren’t taxable in Arkansas, however, there are a few exceptions.

  • Short-term rentals
  • Automobile rentals
  • Pool cleaning
  • Tanning salon
  • Lawn care & landscaping services
  • Janitorial
  • Towing services
  • Dry cleaning and laundry
  • Self-storage
  • Tattooing parlor
  • Pest control services
  • Security and alarm monitoring services
  • Boat storage and docking
  • Camping spaces
  • Locksmith services
  • Pet grooming and kennel services
  • Gyms and health clubs/spas

More information about rules on the gross receipts tax is available from the Arkansas Department of Finance and Administration.

How to register for an Arkansas sales tax permit

A sales tax permit can be obtained by registering through the Arkansas Taxpayer Access Point (ATAP) or by mailing in the AR-1R Combined Business Tax Registration Form.

Information needed to register includes:

Sales tax reporting

How is sales tax collected?

When a business sells a taxable product or service, it charges the appropriate sales tax rate to the customer. The business collects this tax and sends it to the Arkansas Department of Finance and Administration through the Arkansas Taxpayer Access Point.

How much is sales tax in Arkansas?

If the purchase is made at a store or in a mobile location, the sales tax rate varies depending on where the sale took place in Arkansas. In addition to the statewide tax, additional local sales taxes may be added from cities and municipalities. When shipping in-state, the sales tax is based on the purchaser’s address.

The Arkansas Department of Finance and Administration has a Sales Tax Lookup Tool to determine how much sales tax to charge.

When are Arkansas sales tax returns due?

The Department of Finance and Administration will determine a filing frequency based on the expected annual sales volume, which will be monthly, quarterly, or annually. Generally, a business collecting over $100 monthly in sales tax will file monthly.

The due date for filings is the 20th day of the month following the reporting period unless the 20th falls on a weekend or federal holiday, which would move to the next business day.

Even if the business had no sales during the reporting period, a filing indicating no sales is still required.

Arkansas Sales Tax Permit FAQs

How much does an Arkansas sales tax permit cost?

The fee to register for a sales tax permit in the state of Arkansas is $50 and is non-refundable.

How long does it take to get an Arkansas sales tax permit?

Expect 8-10 business days to receive an Arkansas Sales Tax Permit.

Do you have to renew your Arkansas sales tax permit?

The sales tax permit is a one-time registration, and no renewals are needed. Be mindful that if any information about the business changes, such as the mailing address, additional locations, or change in ownership, those changes need to be updated with the Department of Finance and Administration.

How do I get a wholesale license in Arkansas?

A business can purchase items to resell without paying state sales tax. The tax liability is passed from the distributor to the retailer, who will then charge sales tax to the end-user of the item.

Wholesalers and distributors will require a sales tax number and a completed Arkansas Sales Tax Exemption Certificate (also referred to as a wholesale license, reseller’s certificate, or resale certificate) to document that the items being purchased are for resale.

Is a business license the same thing as a sales tax license?

No – Before starting a business in Arkansas, you may need to register for a sales tax permit and obtain other business licenses.

Related: What business licenses are needed in Arkansas

If you have questions about sales taxes, contact the Arkansas Department of Finance and Administration by calling 501-682-7104.

Author

  • Greg Bouhl

    With over two decades as an entrepreneur, educator, and business advisor, Greg Bouhl has worked with over 2,000 entrepreneurs to help them start and grow their businesses. Fed up with clients finding and acting on inaccurate and outdated information online, Greg launched StartUp101.com to be a trusted resource for people starting a business.

How To Register For An Arkansas Sales Tax Permit

How To Register For An Arkansas Sales Tax Permit

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