Arkansas Arkansas

Arkansas

Standard rate: 

6.5% – 11.5%

Reduced rate:

0% – 10%

Sales tax-free products and services:

Long Term Rental Vehicle Tax

Who is obliged to register sales tax:

When you sell in Arkansas,and  you have “sufficient activity” in Arkansas, you need to be registered to collect and pay sales tax in Arkansas

Threshold:

Starting July 1, 2019, online sellers or remote sellers with economic presence or establishing nexus in Arkansas must register to collect sales tax if they have $100,000 in annual Arkansas gross sales or 200+ transactions to Arkansas customers.

Merchant thresholds by state

Marketplace thresholds by state

The special rules are applicable for the SAAS business.

Software as Service Tax Thresholds by state

Online Marketplaces:

If all your sales in Arkansas come from a marketplace reseller platform, in this case you can’t register for paying sales tax in Arkansas. Your marketplace promoter pays the sales tax itself.

If you are selling through your own website, then you will need to register for paying sales tax, if you meet the threshold for remote sellers.

Registration procedure:

You can be registered online via the Arkansas Department of Finance and Administration.

Sales tax payment and filing date: 

Depending on your tax liability,determine your filing frequency – either annual, monthly or quarterly:

Annual – $0 to $25.00
Quarterly – $25.01 to $100.00
Monthly – $100.01 and up

The Arkansas Department of Finance and Administration requires all sales tax filing to be completed by the 20th of the month following the assigned filing period. If the filing due date falls on a weekend or holiday, sales tax is due the next day. Quarterly filing periods end on the last days of March, June, September and December.

Penalty and interest:

  • Late Filing – 5% of tax due per month or cut (maximal 35%)
  • Late Payment – 5% of tax due per month or cut (maximal35%).

Exemption: