Last updated October 14, 2020
These instructions will help you obtain an Alabama sales tax license. For more information about sales tax in Alabama check out our Alabama Sales Tax Guide for Businesses.
1. Who needs a sales tax permit in Alabama?
Retailer sellers of tangible personal property are required to register for an Alabama sales tax license. If you’re not sure if you have “sales tax nexus” in Alabama, check out our Alabama Sales Tax Guide for Businesses.
2. How do you register for a sales tax permit in Alabama?
You can register online at My Alabama Taxes (MAT).
3. What information do you need to register for a sales tax permit in Alabama?
- Personal identification info (SSN, address, etc.)
- Business identification info (EIN, address, etc.)
- Business entity type
- Date started doing business in Alabama
- County you’d like to collect local tax in (if applicable)
- Copy of form 8832 (if elected to be taxed as a corporation or partnership)
- Nexus triggering activities
4. How much does it cost to apply for a sales tax permit in Alabama?
It’s free to apply for a sales tax permit, but other business registration fees may apply.
5. How long does it take to receive your Alabama sales tax permit?
If you register online, it takes 3-5 days to receive your sales and use tax account number. A paper license will be mailed to you, too.
6. Do you have to renew your Alabama sales tax permit?
The Alabama Department of Revenue (Department) announced that, beginning November 1, 2020, taxpayers will be required to renew most of their Alabama tax licenses on an annual basis. A taxpayer that fails to renew its licenses, under Ala. Code Section 40-23-6.1, may no longer use its sales-and-use-tax license to make tax-exempt purchases for resale or rental purposes. This is the first time Alabama has required license renewals. More info from the state here.
7. What else do I need to know about Alabama sales tax?
You will need a “sellers’ use tax permit’ if you have no physical presence in Alabama, otherwise, you will need a sales tax permit.
Make sure you ‘validate’ the zip code for each address, or it won’t let you move forward.
You are required to complete the local tax section, even if you aren’t collecting local tax. If you are from out-of-state and are not collecting local taxes, be sure to indicate your home state as where you are collecting local tax.
8. How can I learn more about Alabama sales tax?
- Read our Alabama Sales Tax Guide for Businesses
- Find the best contact number to call the Alabama Department of Revenue
- Got questions? Ask our vetted list of sales tax experts
Would you prefer a tax professional handle your sales tax registration?
Here’s a list of vetted sales tax pros.
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