Arizona Sales Tax Filing Update October 2019
What's changing in Arizona?
Arizona has passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective October 1, 2019.
- Amazon, eBay, Etsy and Walmart begin this collection on October 1, 2019.
- You can view the state's guidance document here.
How does this affect me?
If you sell through a Marketplace that has agreed to begin collection in this state, you'll see sales tax collected in Arizona for sales on and after October 1, on your TaxJar Dashboard and on your Arizona Transactions page.
- If you have never set up a filing frequency for Arizona in your account's State Settings, our system will default the state to a monthly frequency and due date on your Dashboard after we see tax collected there. (We default to a monthly frequency and due date if you haven't yet adjusted any frequencies on your end, but the state itself would ultimately determine your exact filing frequency.)
- If you are currently opted in to receive email reminders for your sales tax due dates, you'll also see Arizona listed as a state where you have an upcoming monthly return due in those emails.
I've never registered for an Arizona license. Do I need to register for a sales tax license in Arizona now?
I have already registered for a license in Arizona and all of my sales are Marketplace-only sales. Should I cancel my existing registration?
Yes. If your only sales in the state are marketplace sales, the Arizona Department of Revenue states that you will not be required to be licensed or report, so long as you have an exemption certificate(s) or other proper documentation indicating that the marketplace facilitator will file TPT on behalf of the marketplace seller.
- However, if you are a marketplace seller who has already registered due to physical presence, you have voluntarily registered or you have economic nexus, you should remain registered, according to the DOR.
Do I need to collect taxes on my Arizona sales on other platforms?
Yes. If you have nexus in the state (physical or economic) and you make sales to customers in Arizona on platforms outside of the marketplace that is automatically collecting and remitting, you will also need to collect tax on your end on the Arizona orders that are processed on the other platforms.
How does this affect my TaxJar Report for Arizona?
Your Arizona Sales Tax Report will be updated in November 2019 (when returns for sales after October 1, 2019 are due) to specifically reflect sales that had tax collected and remitted by Marketplaces that are supported as Marketplace Facilitators in TaxJar Reports.
- These changes will be similar to the Report updates for other states where the Marketplace Facilitator collects tax automatically.
We are working with the state to address the following questions for Arizona:
Our team is investigating to determine how this update will affect sellers and we will update this article with more details as our research team receives more specific confirmation and guidance from the state's DOR as well as the currently supported Marketplace Facilitators.This article will be updated later in September 2019 with more specific answers for the following questions so please check back soon for more details:
- Do I need to register for a sales tax license in Arizona if all your sales are Marketplace only?
- Do I still need to file returns in Arizona?
- I still need to file returns in Arizona. How do I do this without paying double tax on the sales that were collected and remitted by my Marketplace?