Alabama State Sales Tax Online Application

Alabama Sales Tax Application Common Questions & Support


What constitutes taxable services in Alabama?

 

The majority of service businesses are not taxable in Alabama. The exceptions would be service businesses that manufacture tangible parts or products and sell them at retail. A good example of this would be a HVAC company that services and sells air conditioning units and their parts.

 

 

Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Alabama?

 

As a wholesale company conducting business in the state of Alabama, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.

 

 

Do you have to collect Sales Taxes for shipping charges?

 

If you list shipping charges separately then you do not have to collect sales tax, but if you lump them in with the price of the merchandise sold then you would have to.

 

 

Is there sales tax on drop shipments in the state of Alabama?

 

A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Alabama are required to have sales tax added.

 

 

Are there any exemptions to taxable items sold?

 

Raw materials used in manufacturing and custom downloadable software are tax exempt.

About Sales Tax Application


( if any apply to your business )

 

You have a physical office or place you conduct in the State of Alabama

 

You sell or ship products to a buyer in the State of Alabama

 

You have a distribution location such as a storage area or warehouse space in the State of Alabama

 

You have employees physically present in the State of Alabama (including independent contractors, Sales persons, representatives, or agents)

 

Your business has remote entity presence (Remote sellers making sales in the State of Alabama)

 

Your business has economic presence (businesses who make over $250,000 in sales annually) in the State of Alabama

 

 

State of Alabama County, City, & Municipal Tax Rate Table

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 Alabama Sales Tax Application

Alabama State Sales Tax / Reseller’s Permit / Resale Certificate Application

State of Alabama - Alabama County, Alabama City, & Alabama Municipal Tax Rate Table

Current Alabama state, county and city sales tax rates are maintained on our Alabama sales tax rate table, which shows the statewide rate, how local rates work and where to look up an exact rate by address.

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