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Avalara Help Center

Set Up Arkansas Returns

This article applies to:Returns Central

Tell Us Where You Collect Tax 

Add Arkansas to the places where you collect tax. This tells AvaTax to calculate tax on Arkansas transactions. See the Arkansas Department of Finance and Administration website for details about nexus, registration, and taxes in Arkansas.

Before you add Arkansas, there are two things you need to do:

Arkansas has both sales and sellers use tax. Pick the right tax type based on the way your business is registered and the tax return you need to file.

When selecting the tax type for Arkansas:

  • If you're a retailer who makes sales from outside the state, set the tax type to Sales or sellers use tax
  • If you're a retailer who only makes sales from within the state, set the tax type to Sales tax only

"Sourcing" determines the location where a sale is taxed. Arkansas is a destination-sourced state.

Add Your Company Locations

Arkansas doesn't require location reporting on the returns. Add any physical locations you have in Arkansas to enhance your company setup and track sales by location.

Schedule Your Returns

After you tell us where you collect tax and add locations, you're ready to schedule returns. Go to Returns in AvaTax to provide a funding power of attorney and schedule your returns

Your company name and taxpayer ID from Your Company Details show up on your returns. Make sure they match what’s on your registration information.

Use this info to schedule your returns. Keep in mind that the selections you made when you told us where you collect tax, any location codes you entered, and the forms you select are related and should tie together.

  • Select form AR ET-1 to report all tax types
    • Make sure you enter the registration number associated with your account correctly. The registration number should be in this format: 12345678-SLS.
    • AR ET-1 returns are filed monthly, quarterly, or annually. The filing frequency is dictated by the state based on your average monthly tax liability.
  • Under some circumstances, taxpayers are required to make semi-monthly payments to the state. Arkansas sends notices for these cases.

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