Arizona collects sales tax on the sale of products and services within the state. Arizona uses the term "transaction privilege tax" (TPT) when referring to sales tax. Businesses that buy at wholesale and then resell the products may obtain an exemption from paying TPT when buying the company resale inventory. Resellers, like any other Arizona business, must first register to obtain a sales-tax license for collecting TPT. The resellers may then obtain tax exemptions on resale products by using the TPT license number and Arizona resale certificates.
Things You'll Need
- "Arizona Joint Tax Application"
- "Arizona Resale Certificate"
Download the "Arizona Joint Tax Application" form. You use this form to register for an Arizona sales-tax (TPT) license. The TPT license issued by the Arizona Department of Revenue when filing this form also applies to resales. Resellers can use the license number issued by the Department of Revenue when claiming TPT exemptions for resale products.
Fill out the form. Include all business locations. You must report and pay a fee for each location. Check off the cities where you will be doing business. You must pay a specific city fee for each listed Arizona city where you make sales.
Add up the total registration fees. As of 2010, you must pay $12 to the Department of Revenue for each business location in the state. The city fees range from $1 to $25 per business location within the city.
Make out a check or money order to the "Arizona Department of Revenue" for the total fee amount. Mail in the application to obtain your TPT license number. Use the following contact information to submit the application:
License and Registration Section
Department of Revenue
P.O. Box 29032
Phoenix, AZ 85038
Open the "City/Town Offices" page on the Department of Commerce website to find contact information for city business offices (see Resources). Contact any city where you do business that is not listed on the "Arizona Joint Tax Application" to determine that city's individual tax requirements. You may have to register and pay taxes at the city level in addition to the state application.
Download the "Arizona Resale Certificate." Fill out and submit this certificate to the original seller when purchasing products for resale. You do not have to pay the normal TPT tax when providing this certificate to the seller. Include your TPT license number when completing the certificate.
Tips & Warnings
- You may also fill out the "Arizona Joint Tax Application" online. Select "Register New Business" in the "Business Registration" menu on the AZTaxes home page. Pay by credit card or electronic check after completing the application.
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