One of the first steps you’ll take in starting your business is setting up sales tax. It’s important that you do it the correct way in order to avoid grievances later. Here, we will tell you what you need to do to get set up for sales tax in the state of Arizona.
First, you’ll need to apply for a TPT license by filling out the Arizona Joint Tax Application (JT-1). Before you do this please ensure that you already have a employer identification number (EIN). This will allow you to have access to transaction privilege tax, employer withholding, unemployment insurance and use tax. There are a few ways you can go about licensing your business: have one license number for all of your locations or have multiple license numbers for all locations. If your business closes or relocates, the location number will be null and void. You will get a new license number when you register your change of address.
There are three ways you can apply for your TPT license. One option is to visit www.AZTaxes.gov to register online. There you will be able to apply, file, and pay your TPT license. The only exception to this is if you are a construction contractor. Another option is to download the JT-1 application, fill out, and send electronically or by mail. Lastly, you can also hand deliver your application to their offices in Phoenix, Mesa, or Tucson. If you choose the in person option, only the owner of the business can receive the license and will need to show ID. This means you must be the sole proprietor, a partner, or a financial corporate officer. If you are a construction contractor you must bring your application to a physical office or mail it in.
Turnaround time for receiving the license is relatively quick; if you complete it online you will receive in 24-48 hours, by mail 24-48 hrs plus mail processing time, and if brought in person, it will be processed that same day.
If you have questions about your specific situation and would like more advice, please reach out and we’d be happy to help. You are welcome to submit comments or questions using the COMMENT feature below - OR use the orange "REQUEST" link on FIRM PROFILE page to submit a more detailed question or consultation request.
Other recent “Arizona (AZ)” posts by Gabrielle Luoma, CPA, CGMA:
- Arizona Sales Tax: Small Business Set-Up Process
- 3 Sales Tax Mistakes To Avoid in Arizona
- Arizona Business: Sales Tax Nexus Considerations
- Arizona MAAR Contractors: Simplified Sales Tax Facts
- Should Arizona Service-Based Businesses - Charge Sales Tax?