Any business that sells goods or taxable services within the state of Arkansas to customers located in Arkansas is required to collect sales 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 Arkansas 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.
Do you need to get a Sales Tax certificate in Arkansas State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in Arkansas
- You have a distribution location such as a storage area or warehouse space
- Your business owns real or personal property
- Your business has taxable services in the state of Arkansas
What constitutes taxable services in Arkansas State?
Any service business that installs, repairs, alters, adds, cleans, or replaces the following tangible personal property:
- Motor Vehicles
- Motors of all kinds
- Tires and batteries
- Farm machinery and equipment
- Aircraft
- Electrical appliances and devices
- Machinery of all kinds
- Household appliances
- Mechanical tools and shop equipment
- Tin and sheet metal
- Office equipment and machines
- Medical and surgical instruments
- Engineering Instruments
- Television and radios
- Jewelry, Watches, clocks, shoes, bicycles
- Vehicle parking and storage facilities
- Cleaning Services
- Landscaping and lawncare Services
- Television, Radio, and Video Services
- Towing Services
- Collection and Disposal of Solid Waste
- Pest Control Services
- Security and alarm monitoring services
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Arkansas?
As a wholesale company conducting business in the state of Arkansas, 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 an online seller, Do you need to collect sales tax on shipping and handling of merchandise?
If you sell tangible goods in Arkansas that are taxable than you would charge sales tax on shipping and handling charges.
Is there sales tax on drop shipments in the state of Arkansas?
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 Arkansas are required to have sales tax added
Are there any exemptions to taxable items sold?
Initial installation of new construction, nonmechanical, passive, or manually operated components, and certain products used in agriculture are tax exempt. Additionally, mailing, word and data processing are tax exempt.
Arkansas state, county, city, & municipal tax rate table
Register for an Arkansas sales/use tax number