Filing and Paying of October TPT Liability Due November 20Out-of-state sellers and marketplace facilitators that began collecting transaction privilege tax (TPT) in Arizona in October are now required to file and pay their first month of TPT to the Arizona Department of Revenue (ADOR) by November 20, 2019 using the AZTaxes website.
Under a new state law that took effect October 1, out-of-state businesses and marketplace facilitators that do not have a physical presence in Arizona and meet certain economic thresholds have been collecting transaction privilege tax in Arizona.
A remote seller makes direct sales to Arizona customers and ships products into Arizona, but does not itself have a physical presence in the state. Physical presence includes having a storefront, people or equipment in Arizona. A remote seller will be required to pay TPT if in the current or previous calendar year annual gross proceeds or gross income derived from direct sales into Arizona is more than $200,000 in 2019, $150,000 in 2020 and $100,000 in 2021, and beyond.
A marketplace facilitator is any business facilitating the sale of goods by listing or advertising items on behalf of others, accepting payment on behalf of the seller and remitting payment to the seller. A marketplace facilitator will be required to collect and remit TPT if in the current or previous calendar year annual gross proceeds of sales or gross income through its platform exceeds $100,000 into Arizona.
The Department of Revenue's E-Commerce Compliance and Outreach (ECCO) team is ready to assist remote sellers and marketplace facilitators with filing and paying questions, as well as other inquiries. Agency specialists are also providing support to Arizona-based businesses selling into other states with similar remote seller tax requirements.
Additionally, the department has a dedicated section on its website - www.azdor.gov/out-of-state-sellers - that features TPT requirements, frequently asked questions, examples, links and other information.