Any business that sells goods or taxable services within the state of Arizona to customers located in Arizona is required to collect sales tax (called Transaction Privilege Tax ) from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Arizona must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
You may need a Sales Tax Certificate if any of the following apply your business:
The majority of service businesses are not taxable in Arizona. The exceptions would be if your business fabricates or manufactures a good or product.
As a wholesale company conducting business in the state of Arizona, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
If you sell separately for shipping and handling charges, then you do not have to charge sales tax, but if you include it in the purchase price with the item then you will.
A drop shipment is where a seller ( most times out of state ) sells a product which is then delivered to a consumer by a third party shipper. In most instances, drop shipments in Arizona are required to have sales tax added
Medical Devices and prescription medicine, chemical and machinery used in the Research and development process, and certain groceries are tax exempt.
Register for an Arizona sales/use tax number
Arizona state, county, city, & municipal tax rate table