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

To collect sales tax from customers in different states, you must comply with the tax laws of each state where you have customers. Each state has its own rules and requirements for collecting and remitting sales tax.

In Arkansas, the Secretary of the Department of Finance and Administration performs all functions incidental to the administration, collection, enforcement, and operation of the tax ^[2.1]. Any person who sells tangible personal property through vending devices may elect to register with the Secretary of the Department of Finance and Administration as a vending device operator and pay the state and local sales and use taxes as provided in this section ^[4.1].

If you are selling items and services sold by a business, a county sales tax is applicable and shall be administered under the Arkansas Gross Receipts Act of 1941 and the Arkansas Compensating Tax Act of 1949 ^[1.1]. Any municipal or county sales or use tax levied pursuant to the laws of this state shall be levied and collected only on the first two thousand five hundred dollars ($2,500) of gross receipts, gross proceeds, or sales price on the sale of a motor vehicle, aircraft, watercraft, modular home, manufactured home, and mobile home ^[5.1].

Therefore, to collect sales tax from customers in different states without violating tax laws in Arkansas, you must comply with the tax laws of each state where you have customers and register with the Secretary of the Department of Finance and Administration as a vending device operator if you sell tangible personal property through vending devices.

Source(s):

• [1.1] Applicability of tax.
• [2.1] Administration, collection, etc., of tax.
• [4.1] Registration — Records — Amount of tax.
• [5.1] Limitation on levy of sales or use tax.

Jurisdiction

Arkansas

• General