The state of Arizona begins enforcing transaction privilege tax (TPT) for remote sellers and marketplace facilitators as of October 1, 2019. The Arizona Department of Revenue (ADOR) has released some details on how.
Resources page. The state’s dedicated Out-of-State Sellers resource page provides information on legislation that requires remote sellers and marketplace facilitators to begin filing and paying TPT in Arizona after October 1. The online section outlines TPT requirements, frequently asked questions and other information, including helpful links, such as AZTaxes, the website for registering and licensing, as well as filing and paying TPT.
Help team. The ADOR has installed an E-Commerce Compliance and Outreach (ECCO) team, which will assist remote sellers and marketplace facilitators with any questions about the legislation and the licensing and registering process. Additionally, the team of ADOR specialists will provide guidance to Arizona-based retailers about other states with remote seller programs. The ECCO unit can be reached Monday to Friday from 8 a.m. to 5 p.m. (MST) by phone: 833-293-7253 (833-AZeSale) or by email: azesale@azdor.gov.
Registration to Open on September 9, 2019. Leading up to the October 1 implementation of the new TPT, remote sellers and marketplace facilitators can begin registering with the Department of Revenue on Monday, September 9.
Remote Sellers. A remote seller makes direct sales to Arizona customers and ships products into Arizona, but does not itself have a physical presence in the state. Physical presence includes having a storefront, people or equipment in Arizona. A remote seller will be required to pay TPT if in the current or previous calendar year annual gross proceeds or gross income derived from direct sales into Arizona is more than $200,000 in 2019, $150,000 in 2020, and $100,000 in 2021 and beyond.
Marketplace Facilitators. A marketplace facilitator is any business facilitating the sale of goods by listing or advertising items on behalf of others, accepting payment on behalf of the seller and remitting payment to the seller. A marketplace facilitator will be required to collect and remit TPT if in the current or previous calendar year annual gross proceeds of sales or gross income through its platform exceeds $100,000 into Arizona.
Let’s talk tax
Judy Vorndran can be reached at jvorndran@taxops.com.
More Tax News
Recent Comments