E-commerce Rules In Phoenix
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FAQ
Q: I am based in Arizona and I do not have a storefront, I only sell online; does this mean I am a remote seller? A: Even without a storefront, if you are based in Arizona, you are an Arizona retailer will likely be required to obtain a transaction privilege tax (TPT) license.
If you are a vendor, you will require a Transaction Privilege Tax License for the state/city/county. Visit AZ Department of Revenue for more information. You may also require a city business license and a city permit.
Remote Seller: Any person or business selling or shipping products into Arizona but does not have a physical presence. TPT filing is required if in the current year or previous calendar year a remote seller has more than $200,000 (2019), $150,000 (2020) or $100,000 (2021 and beyond) in sales to Arizona customers.
Any license(s) you need to be in business could be - and often is - generically referred to as a "business" license, however, there are basically three different types of "business" licenses in Arizona: Transaction Privilege (Sales) Tax (TPT), Business, and Regulatory (professional/special).
Overall, businesses who file complete and accurate applications can expect to receive their Arizona TPT license in the following timeframes: AZTaxes: TPT license number same day, mailed license certificate 7-10 business days. Paper JT-1 mailed: 2 weeks. In-Person JT-1: same day.
Consumer-to-consumer (C2C). This is a type of e-commerce in which consumers trade products, services and information with each other online. These transactions are generally conducted through a third party that provides an online platform in which the transactions are carried out.
The remote seller will report these sales using Retail Sales business code 605 for both the state/county and the cities the product is shipped to.
If a remote seller or out-of-state marketplace facilitator meets the economic threshold for sales into Arizona, it will need a transaction privilege tax (TPT) license. By contrast, marketplace facilitators and retailers with a physical presence in Arizona must obtain a TPT license, irrespective of any threshold.
If a remote seller or out-of-state marketplace facilitator meets the economic threshold for sales into Arizona, it will need a transaction privilege tax (TPT) license. By contrast, marketplace facilitators and retailers with a physical presence in Arizona must obtain a TPT license, irrespective of any threshold.
