Retailers in the state of Arizona have to collect a sales tax of 5.6 percent on all goods and services sold. However, this is only the beginning, as the issue of sales tax is notoriously complex and can create headaches for even the most conscientious business owners. Depending on where you live in Arizona, local taxes vary and can bring your total sales tax rate up to 10.7 percent.
Taxes in Arizona are origin-based, which means the sales tax is based on the location where a sale actually originates. There is also a use tax in place in Arizona, which is a tax due on all transactions where sales tax has not been paid. This typically applies to out-of-state online sales.
See also:
Who Has to Pay Sales & Use Tax in Arizona?
Arizona Use Tax & How it Works
A Helping Hand
For most businesses in Arizona, the whole process is stressful, which is why you should consider the help of a Phoenix bookkeeping specialist. At Singer Tax & Accounting, PC, we can give you advice on the best recordkeeping practices and help you report and pay sales tax in the state of Arizona.
The whole issue of paying sales tax can be long and convoluted, but if you leave it to the professionals, you can get back to running your business. With our help, you will be able to comply with all sales and use tax regulations and avoid paying any penalties or fines.
For further questions about Phoenix small business accounting, please contact Singer Tax & Accounting, PC today at (602) 482-8006.