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ADOR - Sales & Use Tax - FAQs

FREQUENTLY ASKED QUESTIONS


WHO NEEDS TO REGISTER?

Click here to view information on areas/taxes which require registration.

HOW DO I REGISTER FOR A TAX ACCOUNT?

Click here to view information on how to register for a tax account and where to register.

IS THERE A FEE TO REGISTER FOR A TAX ACCOUNT?

No, the online registration system is a free service to taxpayers.

WHAT TAX TYPES MAY BE REGISTERED ONLINE VIA MY ALABAMA TAXES?

Click here to view tax types which may be registered online.

HOW LONG DOES IT TAKE TO RECEIVE A TAX ACCOUNT NUMBER?

Applications are processed with three to five business days.

WILL I RECEIVE THE ACCOUNT NUMBER BY EMAIL?

No. You will receive the tax account certificate, containing the account number, by mail.

CAN THE APPLICATION BE SAVED?

No, the application cannot be saved at this time. All information is needed when you begin the application. Click here to view information needed to complete the application.

DO I NEED TO REAPPLY IF I NEED TO CORRECT INFORMATION ON THE APPLICATION?

No. Contact the Business Registration Unit within 24 hours at 334.242.1584.

DO I NEED TO REAPPLY IF I ONLY NEED TO UPDATE TAX ACCOUNT INFORMATION (LEGAL NAME, ADDRESS, CONTACT INFORMATION, ETC.)?

No. To update information after receiving a tax account number, sign in to your My Alabama Taxes account and update the necessary information.

DO I NEED TO REGISTER WITH THE SECRETARY OF STATE (SOS) BEFORE APPLYING FOR AN ACCOUNT?

If the business is a Corporation, Partnership, Single Member LLC, etc., you need to register with the SOS to receive the state assigned Charter Number which is needed to complete the application. If the business is a sole proprietorship, you are not required to register with the SOS, but you will need to confirm availability of a trade name, should you plan to operate under a different name other than the owner's legal name.

WHAT SHOULD I SELECT IN ANSWERING WHETHER I AM A REGISTERED ALABAMA TAXPAYER?

Answer 'Yes' if you have ever received a Sign-on ID and Access Code from the Alabama Department of Revenue for any tax account. If you do not have a Sign-on ID and Access Code, or do not have access to this information, answer 'No' and click the Next button to continue.

HOW DO I ADD ANOTHER TAX ACCOUNT TO MY ENTITY TAX ACCOUNT?

If you are already a registered Alabama taxpayer, select Yes to this question, then complete the requested information. Click here for further details in adding another tax account to the entity.

WHAT IS THE TAXPAYER ID TYPE?

If you are a Sole Proprietorship, the taxpayer id type will be your Social Security Number. If you are a Corporation, Partnership, Single Member LLC, etc., the taxpayer id type will be the Federal Employer ID Number.

WHAT IS A FEDERAL IDENTIFICATION NUMBER (FEIN) AND HOW DO I RECEIVE ONE?

It is a nine-digit number assigned by the Internal Revenue Service (IRS). The IRS requires this number to identify taxpayers who must file various business tax returns. Click here to receive an FEIN online or contact the IRS at 1-800-829-1040.

IS AN FEIN NEEDED TO APPLY FOR AN ALABAMA TAX ACCOUNT?

Yes, an FEIN is required to apply for an Alabama tax account, if the business is a Corporation, Partnership, Single Member LLC, etc. If the business is a sole proprietorship, then a Social Security Number (SSN) is required.

WHAT IS A CHARTER NUMBER?

A Charter Number is received after registration with the Alabama Secretary of State (SOS) to transact business within the state. It is needed to complete the registration application. For charter number or SOS information, click here.

WHAT IS THE FORM 8832? HOW DO I KNOW IF I NEED ONE?

An eligible entity uses this form to elect how it will be classified for federal tax purposes, as: a corporation, a partnership, or an entity disregarded as separate from its owner. For Form 8832 details, click here.

WHAT IS THE DIFFERENCE BETWEEN THE INCORPORATION DATE AND THE QUALIFICATION DATE?

An incorporation date is the date the company was legally formed. A qualification date is the date a foreign entity (one formed outside of Alabama) becomes eligible to do business in Alabama by registering with the Secretary of State's office and receiving a charter number.

HOW DO I DEFINE MY NATURE OF BUSINESS?

The nature of business is the overall activity of the business. If "other" is selected, enter the overall activity being performed by the business.

WHY ARE OWNERS AND PARTNERS REQUIRED TO PROVIDE THEIR SOCIAL SECURITY NUMBERS WHEN REGISTERING FOR A TAX ACCOUNT NUMBER?

Social security numbers (SSNs) are used by the Alabama Department of Revenue as unique identifiers for the administration of Alabama's taxes. SSNs obtained for tax administration purposes are confidential under Section 41-13-6, Code of Alabama, 1975 and not subject to disclosure as public records. Collection of your SSN is authorized under state and federal law.

WHAT IS THE EFFECTIVE/COMMENCE DATE?

The effective/commence date is the date the business began or will begin doing business in Alabama.

WHAT IS A NAICS CODE? HOW DO I FIND THE NAICS CODE?

The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. Click here to find the applicable NAICS Code.

WHAT IS THE DIFFERENCE BETWEEN SALES AND SELLERS USE TAX?

Sales tax is a privilege tax imposed on the retail sale of tangible personal property sold in Alabama by businesses located in Alabama. Sellers use tax is imposed on the retail sale of tangible personal property sold in Alabama by businesses located outside of Alabama which have no inventory located in Alabama, but are making retail sales in Alabama via sales offices, agents, or by any significant recurring contact or "nexus" with Alabama. Click here for more details regarding Sales & Use Tax accounts.

WHAT IS THE DIFFERENCE BETWEEN WHOLESALE AND RETAIL SALES?

Wholesale sales are sales of tangible personal property to licensed retail merchants, jobbers, dealers, or other wholesalers for resale. It does not include sales to users or consumers that are not for resale. Retail sales are sales of tangible personal property to consumers. Click here for more details regarding Sales & Use Tax accounts.

WHAT IS THE DIFFERENCE BETWEEN RENTAL AND LODGINGS TAX?

Rental tax is a privilege tax levied on the lessor for the leasing or renting of tangible personal property. Lodgings tax is a privilege tax on persons, firms, and corporations engaged in renting or furnishing rooms, lodgings, or other accommodations to transients for periods of less than 180 days of continuous occupation and applies to all charges for providing such accommodations. This tax also applies to charges for personal property used or furnished in such rooms or lodgings. Click here for more details regarding Sales & Use Tax accounts.

IS THE REQUEST NUMBER AND ACCOUNT NUMBER THE SAME?

No. The request number lets you know that the application has been submitted via the web. This number can be used to call and check the status of the application. The Account Number is the ten-digit series of numbers and letters assigned by the Alabama Department of Revenue (ADOR). You can find your Account Number on any correspondence that you have received from the ADOR.

HOW DO I APPLY FOR AN EXEMPTION CERTIFICATE?

Click here to apply for an Exemption Certificate.

HOW DO I REGISTER FOR AN AGENT/BULK FILER ACCOUNT?

Click here to register for an Agent/Bulk Filer account.

HOW DO I CLOSE A TAX ACCOUNT?

To close a Business Privilege Tax account, click here. To close all other accounts, click here to log in to your MAT account.

WHERE DO I FIND MORE INFORMATION ON UTILIZING MATS?

Click here to find Frequently Asked Questions about MATS.

If you have questions, please contact our office below:

Business Registration Unit
2545 Taylor Road
Montgomery, Alabama 36117
(334) 242-1584