Arizona sales tax is called a “transaction privilege tax.” This business tax is assessed on purchases of most products and services in the state. An Arizona business must register with the Arizona Department of Revenue to obtain a sales tax license and collect sales tax. The business then remits the tax to the state (and cities in some cases) with Arizona sales tax returns.
If you are just starting an Arizona business, then you will need to register with the Arizona Corporation Commission if you are filing a for-profit corporation, nonprofit corporation or limited liability company. After registering your business, then use its Arizona business name to register for Arizona sales tax and other business taxes. You can access the Corporation Commission corporation and LLC filing forms at azcc.gov/Divisions/Corporations/filings/forms/index.asp.
Check with the Internal Revenue Service to see if you need to obtain an employer identification number (EIN). Broadly speaking, you need a federal EIN if your Arizona business has employees. However, nonprofits and certain other types of Arizona companies or even sole proprietorships may need to get an EIN. Go to IRS.gov and search for EIN registration information with the website search engine. Use your EIN for Arizona sales tax permit registrations and other filings.
Get an Arizona transaction privilege tax license. This is just another term for an Arizona sales tax license. You may need to fill out more than one form because some Arizona cities impose their own sales taxes. Go to azdor.gov/LinkClick.aspx?fileticket=NhqcEr38FAA%3d&tabid=85 to get a paper sales tax application for an Arizona tax ID number. You can also file online at aztaxes.gov/default.aspx?target=Introduction.
To find out whether the city in which your Arizona business operates imposes sales tax, visit the Arizona Commerce Authority “City/Town Offices” page at azcommerce.com/BusAsst/SmallBiz/SBS/H1/CityTownLicensingOffices.htm to find contact information for your local Arizona city tax office. If your city imposes a tax, get the sales tax application forms, tax returns and related tax documents from the city tax office.
When you register for an Arizona sales tax license, you should get some information plus have forms mailed to you. Of course, you also need to find out the Arizona sales tax rate for each area in which you sell. You may use the transaction privilege tax rate tables at azdor.gov/Business/TransactionPrivilegeTax/TPTRates.aspx to figure the rate in your local area and the state tax rate.
Submit your tax returns and sales tax obtained from your customers by the deadline dates. You can get tax returns at AZDOR.gov.
Arizona Joint Tax Application