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How do I utilize Alabama’s Simplified Seller Use Tax Remittance Act?

Overview

I would like to collect 8% in Alabama per the Simplified Seller Use Tax Remittance Act effective October 1st. More information can be found here: http://www.taxrates.com/blog/2015/09...-october-2015/

 

Environment

Avalara AvaTax

Alabama

Resolution

  • Because this is an optional program, designed for parties that do not have nexus with Alabama jurisdictions, we do not make this form available for all customers.
    • It is not available for selection in the Filing Calendars section of the Admin Console.
  • If you are registered as a Simplified Sellers Use Tax filer, Avalara can file this return on your behalf.
    • Please contact Support and provide the following information, so that this filing calendar can be added to your AvaTax account:
      • E-file credentials needed to log into the state electronically file your return
      • Filing frequency
      • Your Alabama registration number/account number
      • Your company EIN/FEIN
      • Filing frequency
      • Effective Date for the first period you would like the form filed on
    • You will also need to confirm that your company name and address listed in your company details on the Organization tab of AvaTax are accurate.
    • Participating qualified sellers can also file online through Alabama MAT if they prefer
  • If you have not yet registered, please contact the Alabama Department of Revenue for more information.
    • This program requires an application to be submitted and approved by the Alabama Department of Revenue before utilizing its benefits.
    • You can also review specific Simplified Seller Use Tax Remittance Act information at the Alabama website Simplified Sellers Use Tax (SSUT).
  • In order to honor the 8% flat rate, a rate override rule would need to be created for Alabama.
    • For information on creating custom tax rules in your AvaTax account, please review Add or Import Custom Tax Rules
      • Please have an Admin User log into the Admin Console and go to Organization > Custom Tax Rules > New.
      • The rule will look as follows:
        • Step 1: Jurisdiction Selection
          • Country: US
          • Level: State
          • Region: Alabama
        • Step 2: Details
          • Name: (create a name for the rule)
          • Rule Type: Rate Override
          • Tax Type: Sellers Use (if you will never have a transaction that uses an Origin address in Alabama) or Sales and Sellers Use (if you will occasionally have transactions with the Origin address in Alabama and need all AL transactions to calculate the 8%)
          • Rate Override %: 8.00
          • Start Date: (set back far enough to catch any transactions that need to be recalculated)
  • Next, because Simplified Sellers Use Tax is applied at the state level only and local jurisdictions are not collected, the nexus selections in your AvaTax account need:
    • All Alabama local jurisdictions deselected
    • Alabama tax type set to Sales or Sellers Use Tax