Can I collect sales tax from customers in different states without violating tax laws in Alaska? What are the requirements?

To collect sales tax from customers in different states without violating tax laws in Alaska, you must comply with the tax laws of each state where you have customers.

Sales Tax in Alaska

In Alaska, a borough may levy and collect a sales tax on sales, rents, and on services provided in the borough ^[1.1]. However, a borough may wholly or partially exempt a source from a borough sales tax that is taxed by a city in that borough under AS 29.45.700 ^[1.1]. If you are selling goods or services in Alaska, you may be required to collect sales tax from your customers. The sales tax rate varies by borough and ranges from 0% to 7.5% ^[1.1]. You should check with the borough where you are doing business to determine if you are required to collect sales tax and what the tax rate is.

Sales Tax in Other States

If you are selling goods or services outside of Alaska, you should check the tax laws of each state where you have customers to determine if you are required to collect sales tax. Each state has its own rules for sales tax collection, and the rules can be complex. Some states require you to collect sales tax if you have a physical presence in the state, while others require you to collect sales tax if you have a certain amount of sales in the state.

Conclusion

In summary, to collect sales tax from customers in different states without violating tax laws in Alaska, you must comply with the tax laws of each state where you have customers. You should check with the borough where you are doing business in Alaska to determine if you are required to collect sales tax and what the tax rate is. You should also check the tax laws of each state where you have customers outside of Alaska to determine if you are required to collect sales tax.

^[1.1]: AK ST § 29.45.660, § 43.50.300, § 43.50.500

Source(s):

• [1.1] Sales and use tax.

Jurisdiction

Alaska

• General