Arkansas sales tax is levied on most products and services sold in the state. Some cites and counties also impose a supplemental sales tax. An Arkansas business needs to register with the state to get a sales tax ID number. The business then collect tax from its customers and uses sales tax forms to send it to the Arkansas Department of Finance and Administration.
File business incorporation or related formation documents with the Arkansas Secretary of State if you are creating one of these Arkansas businesses: corporation, limited liability company, limited liability limited partnership, limited partnership or limited liability partnership. You need to incorporate or file first so you can use your Arkansas business name on registrations for withholding tax, sales tax and other Arkansas business taxes.
Visit the IRS.gov website. Run a search for “EIN registration.” At this step, you may need to get an employer identification number for your other Arkansas tax filing documents. The general rule is that companies with employees that are actually getting paid a salary need a EIN. But nonprofits and some other Arkansas businesses also generally need an EIN even if they have no company or charity employees.
Complete your Arkansas sales tax registration with the Department of Finance and Administration. Go to the department’s “New Business Registration” page at https://atap.arkansas.gov/AR_xwTapMgr.aspx. There, you will register and get an Arkansas sales tax ID number. You can then use that number when paying your customers’ sales taxes to the state.
Access Arkansas sales tax returns and other forms at dfa.arkansas.gov/offices/exciseTax/salesanduse/Pages/Forms.aspx.
Find out the Arkansas sales tax rate for the state and your city and county. In some Arkansas cities and counties, there is a supplemental sales tax rate. From the same forms page linked to above, you can find local sales tax information and the state tax rate by using the links in the navigation menu. Once you have the correct sales rate, collect that from your customers.
Use the Arkansas sales tax forms to submit the taxes to the Arkansas Department of Finance and Administration. Jsut as with all tax returns, make sure you meet all deadlines to avoid being penalized on late sales tax returns.
Arkansas Sales and Use Tax Forms