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

Based on the information provided in the context documents, if you are selling tangible personal property to customers in different states, you may be required to collect sales tax from those customers. However, the specific requirements for collecting sales tax vary by state and can be complex.

Sales Tax Requirements in Arizona

In Arizona, if you are selling tangible personal property to customers within the state, you are generally required to collect and remit sales tax to the Arizona Department of Revenue. The sales tax rate in Arizona is currently 5.6%, but additional local taxes may also apply ^[2.1].

Sales Tax Requirements in Other States

If you are selling tangible personal property to customers in other states, you may also be required to collect and remit sales tax in those states. The specific requirements for collecting sales tax vary by state and can be complex. In general, you may be required to collect sales tax in a state if you have a physical presence in that state, such as a store, warehouse, or office. However, some states have expanded their sales tax laws to include remote sellers who do not have a physical presence in the state but meet certain sales thresholds ^[5.1].

Conclusion

To determine whether you are required to collect sales tax from customers in different states, you should consult with a tax professional or review the sales tax laws in each state where you have customers. It is important to comply with all applicable sales tax laws to avoid penalties and fines ^[2.2].

^{[2.1][2.2][5.1]}

Source(s):

• [2.1] Levy of tax; tax rate; purchaser’s liability
• [2.2] Retailer; advertising absorption of tax prohibited; penalty
• [5.1] Nexus; out-of-state businesses; threshold; applicability; rulemaking; reporting; definition

Jurisdiction

Arizona

• General