Arkansas sales tax guide
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Book a Free consultationYou are reading 1stopVAT’s Arkansas sales tax guide. This article will explain the details of the sales tax in Arkansas (AR).
Our experts at 1StopVat have updated the article with the current and relevant information on how sales tax works in the Wonder State.
You’ll find a wide variety of information related to sales tax as it relates to consumers and businesses, including who is responsible for paying state sales tax and where you can find information about the taxes.
Whether you’re wondering what is the sales tax rate in Arkansas, whether you need to register for Arkansas tax sales, or the filing frequency of Arkansas state sales tax, our sales tax guide will help.
If you have more questions or require specific assistance, don’t hesitate to contact the 1stopVAT team for help.
A Digest on Arkansas sales tax (AR)
A sales tax is paid to a governing authority (state or local) on selling specific products and services. Arkansas enacted a general state sales tax in 1935, and the rate has climbed to 6.5%.
Furthermore, to the Arkansas sales tax rate, there may be one or more local sales taxes and one or more special district taxes, in addition to the state sales tax, each of which can range from 0% to 5%. Presently, the total sales tax rate in Arkansas ranges from 6.5% to 11.5%, depending on where the sale occurs.
Arkansas Tax Nexus
The requirement to collect Arkansas sales tax is dependent on having a solid link with the state. This is referred to as nexus and determines whether the state has the legal right to oblige your company to collect, pay, and return sales tax.
Sales tax nexus can be established by remote or out-of-state sellers who have no physical presence in Arkansas in the following ways:
Affiliate nexus includes having someone as a solicitor of sales of goods on the retailer’s behalf in Arkansas.
Economic nexus is created, and a remote seller must register with the state and collect and pay Arkansas state sales tax if the remote seller has total taxable sales of more than $100,000 or 200 or more individual transactions entering Arkansas in the current or prior calendar year
Inventory in the State includes products held by Fulfillment by Amazon (FBA) merchants and kept at warehouses in Arkansas.
In Arkansas, trailing nexus occurs when sales tax nexus exists even after a merchant ceases the activity that caused it to be “associated in commerce.” As of July 2019, Arkansas did not have a clearly specified trailing nexus policy.
Arkansas sales tax online registration
To register for an Arkansas seller’s permit online, you must submit specific information regarding your business through the Arkansas State Tax Commission (STC).
You will also be asked to provide company and personal details and estimates of your future sales.
Registering for a seller’s permit in Arkansas costs 50$.
If you have trouble with registration or anything involving the sales tax rate Arkansas, don’t hesitate to contact the 1StopVat team for assistance.
Arkansas Taxable Items and Services
Before determining how much is the sales tax in Arkansas, we must figure out what items and services are taxed or exempted.
State law exempts certain items from sales tax Arkansas, such as motor fuel, prescription medicines, computer software, qualified purchases made with food stamps, and some farming equipment.
State law also exempts some customers from merchants buying items for resale, government agencies, and some non-profit organizations from the Arkansas state sales tax rate.
Anything you can sense(i.e., feel, see, touch, weigh, or measure) is tangible personal property such as tools, unattached store counters, display racks, file cabinets, chairs, and office machines and is taxed.
Tangible personal property is taxable to businesses for Arkansas sales tax rates.
What is the current sales tax in Arkansas?
According to the State Tax Commission, the Arkansas state sales tax rate is 6.5%.
On top of that, there may be one or more local sales taxes, as well as one or more special district taxes, in addition to the state sales tax, each of which can range from 0% to 5%, putting the total Arkansas sales tax percentage at 6.5% to 11.5%. If you want a quick way to calculate how much sales tax in Arkansas your company should collect, check out our Sales Tax Calculator or contact the 1stopVAT team.
Arkansas Tax Frequency
Once you’ve registered with the Arkansas Department of Finance and Administration and started collecting sales tax rates Arkansas, you become responsible for transferring tax revenue from customers to tax authorities.
The Arkansas State Tax Commission will assign your company a filing frequency.
You will either be assigned a monthly, quarterly, or yearly frequency. The frequency depends on the quantity or volume of your company’s sales.
For example, more prominent companies must file more frequently. The filing terms apply to both the sales and use tax Arkansas.
Did you learn everything you need to know about sales tax in Arkansas?
We hope we were able to inform you of everything you needed to know about Arkansas’ Sales Tax and questions, such as what’s the sales tax in Arkansas.
If you have any other inquiries, please do not hesitate to contact the 1stopVAT team.
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