How to Register for a Sales Tax Permit in Arkansas

Who Needs a Sales Tax Permit in Arkansas

In Arkansas, any business selling tangible personal property or specific services that are subject to sales tax is required to collect and remit sales tax to the state. This applies to physical storefronts, service providers, and online sellers. 

The economic nexus threshold in Arkansas requires that businesses with $100,000 in sales or 200 or more transactions in the state must collect sales tax, even without a physical presence in Arkansas. 

Examples of businesses that require a sales tax permit include local retail stores, contractors offering taxable services, and out-of-state online retailers exceeding the sales threshold.

Steps to Register for a Sales Tax Permit in Arkansas

Follow these steps to register for a sales tax permit in Arkansas. 

1. Prepare Your Documents

You will need the following information: 

• Legal Business Name: Ensure alignment with the name registered with the Arkansas Secretary of State.
• Physical Business Address: An actual street address is needed; P.O. boxes are typically not accepted.
• Federal Employer Identification Number (FEIN): Obtainable from the IRS if not previously acquired.
• Contact Information: Include primary business contact phone numbers and email addresses.
• North American Industry Classification System (NAICS) Code: This code categorizes your business industry.
• Date of Business Commencement in Arkansas: Specify when your business operations began or are due to begin in the state.

2. Register Online via the Arkansas Taxpayer Access Point (ATAP)

To register, navigate to the Arkansas Taxpayer Access Point (ATAP), and select “Register a business/Obtain a new tax account number.” Provide all required information, review your application for accuracy, and submit it through the portal.

3. Await Approval

After online registration, it typically takes a few business days to receive your account number. Once approved, you will receive your sales tax permit, allowing you to collect sales tax in Arkansas.

Managing compliance while growing your business can be challenging. doola’s Bookkeeping services can simplify the process and ensure that you remain 100% compliant.

Understanding Your Sales Tax Responsibilities in Arkansas

Businesses in Arkansas are usually required to file sales tax returns monthly, quarterly, or annually, depending on their sales volume. Applying the correct sales tax rates is essential, as these can differ based on location, including state, county, and city levels. Arkansas also has specific exemptions and rules, such as tax-free holidays and the use of resale certificates, which can affect how and when tax is collected.

Common Mistakes to Avoid

• Neglecting to register for a sales tax permit when required.
• Charging incorrect sales tax rates for various local jurisdictions.
• Missing filing deadlines and incurring penalties.
• Overlooking exempt sales and failing to maintain proper resale certificate documentation.

How to Maintain Compliance & File Sales Tax Returns

To file sales tax returns in Arkansas, access the ATAP portal to submit your returns and remit payment electronically. Automated solutions can also simplify tax collection and ensure accuracy.

Remember that doola is here to help with books and taxes, ensuring your business remains compliant effortlessly. 

FAQs About Sales Tax Permits in Arkansas

How long does it take to get a sales tax permit? 

Typically, it takes a few business days for the Arkansas Department of Finance and Administration to process a sales tax permit application.

Do I need to renew my sales tax permit? 

No, once issued, a sales tax permit in Arkansas does not require renewal, assuming compliance is maintained.

What happens if I stop doing business in Arkansas? 

You must formally close your sales tax account by notifying the Arkansas Department of Finance and Administration.

Are online sellers required to collect sales tax in Arkansas? 

Yes, if they meet the $100,000 sales or 200 transaction threshold for economic nexus, online sellers must collect Arkansas sales tax.

Stay Compliant With doola 

Obtaining a sales tax permit is essential for any business operating in Arkansas. Staying compliant requires timely awareness of deadlines, accurate tax collection, and understanding exemptions. 

Businesses should seek professional help to ensure everything is managed correctly. For financial solutions, doola can provide guidance to ensure compliance, making it easier for your business to thrive. 

Visit the Arkansas Department of Finance and Administration website for further information and resources.