The state of Alabama has a sales tax on purchases of most products and services within the state. Businesses must collect the Alabama sales tax when selling taxable goods and services. A business needs to first fin the Alabama sales tax registration form. It can then avoid potential legal problems by collecting and submitting Alabama sales tax to the state.
Complete any corporate or other business registrations before applying for an Alabama sales tax permit. Many businesses must file with the Alabama Secretary of State. Go to the website at sos.state.al.us/BusinessServices/Default.aspx and determine if you need to file your Alabama business at the state level. Business entities required to file with the Secretary of State in Alabama include corporations, limited liability companies and some partnerships. When you file your business in Alabama, use that business name as the registrant on your sales tax registration documents.
Get a federal employer identification number (FEIN or EIN) from the United States Internal Revenue Service. Only some Alabama businesses (typically ones with employees and all nonprofit organizations) must get an FEIN. Go to the IRS.gov website to get more information about EIN numbers. You can run a search at the top of the IRS main page.
Get the Alabama sales tax registration form. In fact, Alabama uses an online system called the “Alabama Business Tax Online Registration System” to issue an Alabama sales tax ID number. Access the system at revenue.alabama.gov/salestax/register.html.
Use the forms and instructions provided by Alabama to figure the sales tax due on the products and services you sell in this state. You can also find links to Alabama sales tax rates and city/county sale tax rates on the “Sales and Use Tax” page at revenue.alabama.gov/salestax/index.html.
Find Alabama sales tax returns (and use tax returns) on the sales tax forms page of the Alabama Department of Revenue Sales, Use and Business Tax Division. You can find this page at revenue.alabama.gov/salestax/stforms.html. Use the forms there and the instructions provided to pay the sales tax that you collect from Alabama consumers.
Check with your Alabama city and county tax departments to see if you have additional sales tax collection and payment requirements for your business. Some, but not all, contract with the Department of Revenue for the collection of local Alabama sales tax.
Alabama Sales Tax Forms