The SSUT program allows eligible sellers to collect, report and remit a flat eight percent (8%) sellers use tax on all sales made into Alabama. Additional information: Sales and Use Tax Rules Simplified Sellers Use Tax Alabama taxpayers will be able to verify and update their business information for new licenses on the My Alabama Taxes website for the upcoming year. Alabama Department of Revenue Sales & Use Tax Division P. O. Distributions of simplified sellers use tax proceeds § 40-23-198: Applicability of Part 2 § 40-23-199: Amnesty for certain uncollected remote use tax § 40-23-199.1: Amnesty for certain uncollected remote use tax § 40-23-199.2: Marketplace facilitators § 40-23-199.3: Online application process Alabama . During FY 2017 alone, collections were $60 million. Local jurisdictions (municipalities and counties) can administer their own local option sales and use taxes, changing local rates and certain rules by ordinance. Refer to our Sales and Income Tax article for more info. The local portion of the simplified sellers use tax will be distributed to cities and counties of the State of Alabama based on population. Pursuant to this Act, an eligible seller participating in the Simplified Sellers Use Tax Remittance Program that acquires an in-state business, thereby establishing substantial nexus with Alabama, may elect to continue participation in the Simplified Sellers Use Tax Remittance Program to satisfy the […] Quick Answer: Alabama offers a few different types of tax returns to help you file and pay sales tax to the state. 2. this preprinted form is only for the use of the firm or person to whom it has been issued. This means local sales tax may be due. The program established in this part to provide a mechanism for eligible sellers to collect, report, and remit the simplified sellers use tax established pursuant to this part. On October 1, 2015, Alabama allowed retailers to voluntarily join their Simplified Sellers Use Tax program in which sellers would collect a flat 8% sales tax no matter where they shipped to within the state. However, the key difference is that the sellers use tax is imposed on vendors located outside of the state, but are registered to collect tax … There are a few more things you should know about sales tax in Alabama: Penalties: Late Filing Penalty Greater of 10% of tax due or $50. MONTGOMERY — Governor Kay Ivey on Friday signed into law HB470, sponsored by Representative Rod Scott, which requires online marketplaces to collect and remit use taxes on sales made through their marketplaces by third-party sellers, or to report such sales to the Alabama Department of Revenue and notify customers of use tax obligations. Division 3 - Conditions for Remote Entity Nexus. TOPS Club, Inc. has collected the simplified use tax on taxable transactions delivered into Alabama and the tax will be remitted on the customer's behalf to the Alabama Department of Revenue.. Alabama has updated the amnesty and class action provisions for eligible sellers participating in state’s Simplified Sellers Use Tax Remittance Program. What is Sellers Use Tax? The local portion of the simplified sellers use tax will be distributed to cities and counties of the State of Alabama based on population. of portion of the proceeds to the Circuit Court of the Thirteenth Judicial Circuit Tag Archive for Simplified Sellers Use Tax program. The State of Alabama created the simplified sellers use tax program (SSUT) under Statute § 40-23-192. Read more. Simplified Sellers Use Tax. Simplified Sellers Use Tax . Part 2 - Simplified Seller Use Tax Remittance Act. TOPS Club, Inc's program account number is SSU-R010499553. Box 327790 Montgomery, AL 36132-7790. 21 Apr 2017 . Article 6 - Tax on Remote Sellers. Alabama's Simplified Sellers Use Tax. Sellers use tax is the same as a sales tax. Late Payment Penalty 10% of tax due. Alabama's Simplified Sellers Use Tax. We are required to provide the following statement under the SSUT: “Seller has collected the simplified sellers use tax on taxable transactions delivered into Alabama and the tax will be remitted on the customer’s behalf to the Alabama Department of Revenue. This blog gives instructions on how to file and pay sales tax in Alabama with the Simplified Sellers Use Tax Return, a return commonly used by out-of-state sellers. Subscribe to our customer newsletter! - The largest financial impact on the program has been the addition of Amazon in December 2016. Chapter 23 - SALES AND USE TAXES. You have to apply for the sales and use tax certificate of exemption (Form STE-1) all of which is done through the MAT application. The state passed the “Simplified Seller Use Tax Remittance Act” in 2017, which allows eligible remote sellers to collect and remit a flat, eight percent sales tax rate, rather than collecting and remitting based on a litany of different local rates. Remote sellers with more than $250,000 in annual Alabama sales should register for the Alabama Simplified Sellers Use Tax Program (SSUT) and begin collecting no later than October 1, 2018. (Rule 810-6-2-.90.03, Alabama Department of Revenue, effective October 22, 2015, applicable on or after January 1, 2016) Alabama's law also allows them to lock in the 8 percent rate even if the federal government adopts a higher figure in the future. We are required to provide the following statement under the SSUT: “Seller has collected the simplified sellers use tax on taxable transactions delivered into Alabama and the tax will be remitted on the customer’s behalf to the Alabama Department of Revenue. Ala. Code § 40-23-191 (1975) Amended by Act 2018-539,§ 1, eff. Recently enacted legislative changes to the Alabama Simplified Sellers Use Tax Remittance Program are discussed. Alabama has a complicated sales and use tax structure. TOPS Club, Inc. has collected the simplified use tax on taxable transactions delivered into Alabama and the tax will be remitted on the customer's behalf to the Alabama Department of Revenue.. Seller has collected the simplified sellers use tax on taxable transactions delivered into Alabama and the tax will be remitted on the customer's behalf to the Alabama Department of Revenue. It is a transaction tax, calculated as a percentage of the sales price of goods and certain services. Alabama’s Simplified Sellers Use Tax - From SSUT inception (Oct. 2015) through Dec. 2017, collections were $79 million. The State of Alabama. Written by Monika Miles | Posted in State Tax. Marketplace facilitators with no physical presence in the state and more than $250,000 in annual Alabama sales must elect to register to collect Alabama’s Simplified Sellers Use Tax or comply with use tax notice and reporting requirements. sellers use tax quarterly returns instructions to taxpayer: 1.enclosed are enough sellers use tax forms for the entire calendar year. [2] An eligible entity must apply to be accepted in the program before the entity can use the 8% rate and collect tax at that rate. This means that if you qualify for the Alabama sales tax exemption number. The State of Alabama created the simplified sellers use tax program (SSUT) under Statute § 40-23-192. 2017 Code of Alabama Title 40 - REVENUE AND TAXATION. (7) STATE. Seller’s program account number is SSU-R010206838. Using the collecting, reporting and remitting provisions created by the Simplified Sellers Use Tax Remittance Act codified at §§40-23-191 through 40-23-199, Code of Alabama. SB233 by Sen. 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