Legislative Act No. 2015-448, entitled the "Simplified Seller Use Tax Remittance Act," allows eligible sellers to participate in a program to collect, report and remit a flat eight percent (8%) sellers use tax on all sales made into Alabama. An eligible seller is one that sells tangible personal property or a service into the State of Alabama from an inventory or location outside the state but does not have a physical presence in the State of Alabama and who is not otherwise required by Sections 41-4-116 or 40-23-190, Code of Alabama 1975 to collect tax on sales made into the state.
In order to qualify to collect and remit the flat eight percent (8%) sellers use tax, eligible sellers must apply and be accepted into the program prior to collecting and remitting the 8% tax. Those sellers who have been approved to participate will collect, report, and remit the eight percent (8%) simplified sellers use tax for as long as they remain in the program. The simplified sellers use tax is required to be electronically reported and paid by the 20th day of each month for the preceding month's tax collected. In addition, participating eligible sellers may deduct and retain a discount equal to two percent (2%) of the simplified sellers use tax properly collected and remitted to the Alabama Department of Revenue in a timely manner.
The flat tax applies to all sales regardless of the locality shipped to in Alabama. The collection and remittance of the simplified sellers use tax relieves the eligible seller and the purchaser from any additional state and local sales or use tax on the transaction. Purchasers from whom the tax has been collected may apply for a refund or take a credit on their consumer's use tax return if the eight percent (8%) collected by the eligible seller exceeds the purchaser's combined state and local tax rate. The local portion of the simplified sellers use tax will be distributed to cities and counties of the State of Alabama based on population.
Purchasers may also request a refund of SSUT overpaid if they are located in an area where the sales tax rate is lower than the flat 8% they paid on an invoice to a SSUT eligible seller. Please click on the link below for the Form ST-8, SSUT Petition for Refund and read all instructions prior to requesting a refund. Only one (1) refund is allowed per taxpayer in a twelve (12) month period.
If you have questions regarding this program or would like to apply to participate in the SSUT program, please click the link below and complete the application or contact the Sales and Use Tax Division at 334-242-1490 or our toll-free number 1-866-576-6531.
SSUT applications may be mailed, faxed to 334-353-7666 or emailed directly to Brenda.Wallace@revenue.alabama.gov.