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Some customers are exempt from paying sales tax under Arkansas law. Examples include government agencies, some nonprofit organizations, and merchants purchasing goods for resale. Sellers are required to collect a valid exemption or resale certificate from buyers to validate each exempt transaction.
Yes, the repair (parts and labor) of farm machinery and equipment is taxable. Is used property taxable? Yes, the sale of used tangible personal property is taxable except as noted in Arkansas Gross Receipts Tax Rules GR-18 and GR-50.
This article answers some of the basic questions regarding sales tax in Arkansas. Arkansas imposes a tax based on the gross receipts from sales. Sales of tangible personal property or services to contractors and sales to consumers or users are generally subject to the gross receipts tax.
Yes, the repair (parts and labor) of farm machinery and equipment is taxable. Is used property taxable? Yes, the sale of used tangible personal property is taxable except as noted in Arkansas Gross Receipts Tax Rules GR-18 and GR-50.
Currently, sales of contracts, maintenance agreements, and warranties that involve the future performance of taxable services are subject to Arkansas sales tax. Services performed under those contracts are exempt from sales tax because tax was paid on the warranty agreement.
Generally Applicable Law All contractors are deemed to be consumers or users of all tangible personal property including materials, supplies, and equipment used or consumed by them in performing any contract, and the sales of all such property to contractors are taxable sales.
Arkansas does not require businesses to collect sales tax on the sale of digital goods or services.
All contractors are deemed to be consumers or users of all tangible personal property including materials, supplies, and equipment used or consumed by them in performing any contract, and the sales of all such property to contractors are taxable sales.
Sales of parts purchased for use in performing service under optional maintenance contracts are exempt from the sales tax in Arkansas.