What is the Arizona Transaction Privilege Tax?
Arizona transaction privilege tax is a sales tax which is levied on taxable items and services provide in the state of Arizona. The state of Arizona issues one license for sales and use tax, which is used to collect sales and use tax from within and out of state Arizona buyers.
Why get an Arizona Transaction Privilege Tax?
An Arizona TPT license is secured to sell following taxable items:
Retails sales, restaurant, bars, hotel, motel, transient lodging, commercial lease, amusements, personal property rentals, contracting, severance, metal mining, transporting, nonmetal mining, job printing, publishing, utilities, communications and rent a car.
An updated list of the items which are subject to sales and use tax is printed from the Arizona Department of Revenue website.
What is the difference between a sales and use tax?
The difference between sales and use tax, licenses are described below:
The Sales Tax Arizona: It is a tax which is collected from an Arizona buyer who buys a taxable product from a local Arizona vendor.
The Use Tax Arizona: It is a tax which is collected either from an out of state or a local buyer who tends purchases but does not pay sales tax on taxable products at the time of purchase.
Imposition of use tax is a vital and fair action of the Arizona department of revenue, lawmakers, which discourages a local buyer to buy taxable goods from an out of state vendor to avoid paying sales tax.
What is a significance of sales and use tax?
Collection of Sales and use tax have a lot of advantages, but few are described below:
The tax money which is collected from a buyer on taxable goods is spent on local projects.
The state and city do not depend on the federal help and sponsor their own local projects.
Who acquires an Arizona TPT License?
A person or business who is selling taxable products and services are eligible to apply for a TPT licensed Arizona.
A new TPT license is acquired for an additional location under a same or a separate company.
An Arizona Seller's permit is obtained whether conducting business from home or a store front.
How to calculate TPT tax on the taxable items in the state of Arizona?
Sales and use tax is charged for transferring the tangible taxable property to a buyer and it is calculated on the gross receipts. Shipping, handling and other necessary services are add in the product cost prior to calculate sales tax.
Sales and Use tax is not deferred or charged later time. It is collected and reported in the period it was received.
Sales and Use tax is collected from an Arizona and out of state buyer for Arizona Department of Revenue. A business owner is personally liable to deposit sales and use tax to the state on or before the due date.
How to verify a TPT license?
A buyer enters an eight digit transaction privilege tax, license number for the Arizona Department of Revenue website which verifies the existence of the license.
Where to apply Arizona Transaction Privilege Tax?
TPT permit is applied electronically on AZDOR.Gov.
What is an estimated time to process the sales and use tax application by the Arizona Department of Revenue?
Arizona state normally issues an Arizona sales and use tax number within two days after successfully receiving the application electronically.
When does state of Arizona TPT permit renew?
Arizona Transaction Privilege Tax is renewed every year by the Arizona department of revenue.
Is state of Arizona Transaction Privilege Tax is transferable?
No, An Arizona TPT license is not transferable and a new business owner applies for a new Arizona Transaction Privilege Tax.
How to reclaim a lost copy of TPT Permit Arizona?
A request is sent to the Arizona department of revenue to issue a duplicate copy of a lost TPT license.
What are the filing frequencies to file an Arizona Transaction Privilege Tax?
Described below the Arizona Transaction Privilege Tax deadlines which are filed with the Arizona department of revenue.
Monthly TPT tax filers pay current month sales tax by the 20th of the following month, which is collected from the buyers on the taxable items.
Quarterly TPT tax filers pay current quarter sales tax by the following month of the 20th which is collected on the taxable items.
Annually TPT filers in the state of Arizona pay current month sales tax on or before January 20th which is collected from buyers on taxable goods.
Notes: If the deadline for TPT tax filing falls on a holiday, the state of Arizona allows to file on the next business day.
