Alabama Sales Taxpayers Now Required to Renew Permits Annually

by TaxJar November 1, 2020


What does Alabama’s new requirement mean for retailers?

According to a notice on the Alabama Department of Revenue website, it appears that the state wants taxpayers to verify annually that their business entity and key information (legal name, officers, contact info, etc.) has not changed. 

When renewing your license, the state will require you to review and/or update the following information:

  • Current Legal Name – must be reviewed
  • Owner/Officer/Member Information – must be reviewed and/or updated
  • Phone number(s) – must be reviewed and/or updated
  • Social security numbers/FEIN’s – must be reviewed
  • Location address(es) including d/b/a’s for each location – must be reviewed and/or updated
  • Main address must be reviewed
  • Location address(es) must be reviewed and/or updated

Other tax types that now require Alabama license renewal include:

  • Rental Tax
  • Sellers Use Tax
  • Lodgings Tax
  • Utility Gross Receipts Tax
  • Simplified Sellers Use Tax

This requirement goes into effect immediately. Starting in 2020, taxpayers registered with the state are required to renew their Alabama sales tax permits annually.

For current permit holders, this means you are required to renew your permit between November 1, 2020 and December 31, 2020.

How do I renew my Alabama sales tax license?

To renew your Alabama sales tax license, login to the My Alabama Taxes (MAT) website

Also, keep in mind that if your business type changes, you will be required to apply for a new Alabama tax license reflecting that business type. 

What happens if I don’t renew my Alabama sales tax license?

If you do not renew your Alabama sales tax permit, it will be cancelled. This means you’ll no longer hold the legal right to sell at retail or use your sales tax permit as a resale certificate to buy items tax free for resale. 

In order to qualify to sell at retail again, you’ll need to register for a new Alabama sales tax license.

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