Arizona Sales Tax Guide for eCommerce Businesses
Arizona Sales Tax Guide for eCommerce Businesses
Sales Tax eBook
Contact Us
Arizona's Sales Tax Authority
State Phone Information
602-255-3381
Member of the Streamlined Sales Tax Governing Board?
No
Tax percent range for remote sellers in Arizona
5.6% to 11.2%
The information on this page is for reference only and should not be used as legal or tax advice. If you are concerned about your sales tax obligations it is advised to hire a professional.
This Page was last updated: December 2021
Do you need to collect sales tax in Arizona?
TPT- Transaction privledge tax is tax on a vendor or seller for the opportunity of being allowed to do business in the state. This tax is Arizona’s version of a sales and use tax and is handled similarly to sales and use tax in other states. For the purposes of this guide, we’ll refer to it as sales tax.
If you have nexus in Arizona, you will need to first register, then collect and remit sales tax. There are two main ways that sellers can have nexus: physical or economic.
Physical nexus - A seller physical/ tangible presence in the state.
Economic nexus - A remote seller (no physical presence) passes the threshold tor total revenue or number of transactions.
Does Arizona charge sales tax on shipping?
No
Do you have physical nexus in Arizona?
A seller has physical nexus in Arizona if they have any of the following:
An office or place of business
An employee present in the state for more than 2 days per year
Goods in a warehouse
Ownership of real or personal property
Delivery of merchandise in Arizona in vehicles owned by the taxpayer
Independent contractors or other representatives in the state for more than 2 days per year
Do you have economic nexus in Arizona?
Arizona's Economic Nexus Sales Threshold
$150,000 (Year 2020), $100,000 (2021+)
Economic Transactions Threshold
N/A
Economic Nexus Evaluation Period
Either Current or Previous Calendar Year
Economics Nexus Effective Date
October 1, 2019
What types of sales are included in Arizona's Economic Nexus Sales Threshold?
Gross Sales
However, Marketplace Facilitator sales are included in the Economic Nexus Sales Threshold
How does Arizona treat exempt transactions when calculating economic nexus?
Exempt sales and exempt services are excluded in the threshold
Does Arizona have a Marketplace Facilitator Law?
Yes, Marketplace Facilitators are required to collect and remit sales tax on behalf of sellers on their platform.
Filling Sales Tax
When are Returns Due?
Arizona sales tax filing and paying depends on your filing frequency and the due dates set out by the state.
How often are Sales Tax Returns filed?
Monthly, Quarterly or Yearly
This period is determined by the state typically by assessing your volume of sales in the state.
Options for filing sales tax returns:
Online - The Arizona Department of Revenue requires that online sellers file sales tax online if your tax liability in the previous years was $1,000,000 or more.
Mail - If you live in-state, you can use Form TPT-EZ, or TPT-2 if you live out-of-state
eSenshi-File – Let us fight your tax battle, we always win! Check out our sales tax services here.
Let us fight your sales tax battles
Get a complete solution to sales tax from audits to filings, get complete tax compliance security with eSenshi