If your company has recently started doing business in Alabama, you may need to register for sales tax with the Alabama Department of Revenue. Sales tax registration is required for businesses selling tangible personal property or taxable services in the state, and it is important to ensure compliance with state tax laws.
How to get a Alabama Sales Tax License
There is one sales tax setup task you may need to complete in Alabama to get your sales tax licence. You can follow the guide below to help you get registered directly with the Alabama agencies or use Mosey to do it.
Use Mosey to register for sales tax in Alabama.
Avoid the manual work and headache of registering with state agencies yourself. Automate it with Mosey and stay compliant.
Alabama Sales Tax Setup for LLC, LLP, Corporation
All businesses that sell tangible personal property and have a physical presence are required to required to register with the Department of Revenue and to collect and remit sales tax. Foreign businesses that sell tangible personal property delivered into Alabama exceeding $250,000 per year based on the previous calendar year’s sales have economic nexus and are also required to register. The Alabama sales tax is 4% of the gross proceeds of sales into the state, and the use tax is 4% of gross proceeds of all sales. Note: SaaS is considered a taxable service in Alabama. You may also be subject to additional city and county sales and use taxes and required to register and collect the local sales and use taxes. In most cases, nonprofit organizations have no special exemptions for sales and use taxes.
Register as a New Business
If you do not already have a My Alabama Taxes account, register as a new business by clicking on "Register a business/Obtain a new tax account number" under the Business section of the My Alabama Taxes homepage.
Register for a Sales and Use Tax Account
If you already have a My Alabama Taxes account, log in to register to for sales and use tax. Go to the "Accounts" tab and click the "Register additional tax types/Obtain a new tax account number" link to begin registration.
Alabama Sales Tax Filing Requirements & Deadlines
There is one sales tax filing requirement & deadline you may need to complete in Alabama. You can follow the guide below or use Mosey to do it.
Alabama Sales Tax Return and Payment for LLC, LLP, Corporation
Unless you have requested to file annually (eligible for those who had a tax liability for the preceding calendar year under $600 total, or you made sales for no more than a thirty consecutive day period) or quarterly (eligible if your tax liability was less than $2,400 total for the preceding calendar year), you are required to file monthly sales and use tax returns. Your returns and payments are due by the 20th day of the month of the previous month’s sales.
File Sales and Use Tax Return and Make Payment
File your monthly sales and use tax return information and make payments at the same time using MAT.
