On Jan. 1, 2014, Alabama put into place new rules for sales tax collection on delivered products. The Alabama Retail Association has heard from many of you who missed this update and are now facing a sales tax audit.
Under the new rule, a seller using its own delivery trucks and its own employees must collect and remit the applicable local sales tax based on where the product was delivered. A seller using a common carrier (UPS, FedEx, etc.) would not be responsible for the taxes unless the seller has another “physical presence” in the jurisdiction.
Take a few minutes to read over the new rules and make sure you are collecting properly.
Is this the first you are hearing about this new rule?
We communicated this rule change to Alabama Retail members back in 2013 and the early parts of 2014. If you are not a member and would like to stay up to date on regulatory issues affecting your business, visit the “Join Us” page to get connected.
If you are already an Alabama Retail member and missed these updates, make sure ARA has the proper email address for you. Email Brett Johnson at firstname.lastname@example.org to make sure the right people at your business are getting updates on regulatory and legislative changes.