Who Has to Pay Sales & Use Tax in Arizona?

A business is responsible for collecting and remitting all applicable state taxes if it has a physical presence within the state of Arizona, such as:

• A physical store
• A warehouse
• An office
• A sales representative

Additionally, an out-of-state seller is required to collect tax if they can be defined as a retailer. There are also a few important rules to consider when it comes to collecting and paying sales and use tax in Arizona:

• Shipping is not deemed to be taxable
• Sales tax is not charged on finance charges when they are stated separately
• The sales tax rate also applies to clothing
• This state does not have any sales tax holidays planned