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Simplified Sellers Use Tax (SSUT)

Access the Simplified Sellers Use Tax Disbursement Report for each locality by clicking the button below.

Get Disbursement Report

Access the Simplified Sellers Use Report of SSUT Participants by clicking the button below.

Get Participant Report

Legislative Act 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.

Act 2017-82 amends the Simplified Sellers Use Tax law, and as of July 1, 2017 a participant in the program may remain in the program unless the seller establishes nexus via a storefront, or affiliation with another business with a physical presence making retail sales in Alabama, pursuant to Section 40-23-190, regardless of the length of time in the program.

The 2017 Act also states the Department may disclose the name of eligible sellers, the effective date the eligible seller began participating in the program and, if applicable, the cease date the eligible seller ceased to participate in the program.

Act 2018-539 amends the Simplified Sellers Use Tax law, and as of January 1, 2019, marketplace facilitators will be required to collect and remit simplified sellers use (SSUT) tax on all marketplace sales including those of marketplace sellers or report such sales to the Alabama Department of Revenue and provide customer notifications.

By no later than January 1, 2019, marketplace facilitators having sales made into Alabama through the marketplace of $250,000 or more must either register with the Alabama Department of Revenue to collect and remit simplified sellers use tax on retail sales made through the marketplace by or on behalf of a marketplace seller that are delivered into Alabama, whether by the marketplace facilitator or another person or report such retail sales to the Alabama Department of Revenue and provide customer notifications pursuant to Section 40-2-11 (7) (b) and the rules promulgated thereunder.

As of January 1, 2019, the two percent (2%) discount will apply to the first $400,000 of taxes collected and remitted.  Discount cannot exceed $8,000 per month.  No discount is allowed for any taxes which are not timely reported and remitted to the Department pursuant to program procedures.

As of June 5, 2019, Act 2019-382 updates the amnesty and class action provisions for eligible sellers. The 2019 Act states an eligible seller participating in the program shall be granted amnesty for any uncollected simplified sellers use tax that may have been due on sales made to purchasers in the state for all periods preceding October 1, 2019, and no class action may be brought against an eligible seller in any court of this state on behalf of customers for an overpayment of simplified sellers use tax.

The 2019 Act also clarifies transactions for which Simplified Sellers Use Tax cannot be collected and remitted. The Simplified Sellers use Tax shall not be collected and remitted in lieu of the sales and use tax collected by a licensing official pursuant to Section 40-23-104.

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.  Note: If paying via EFT, the EFT payment information must be transmitted by 4:00 p.m. (Central Standard Time) on or before the due date, to be considered timely paid.

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.  To request a refund of overpaid taxes, click on the “Request a SSUT Refund” link on the the My Alabama Taxes homepage:  myalabamataxes.alabama.gov. Only one (1) refund is allowed per taxpayer in a twelve (12) month period.

If you have questions regarding this program, please contact the Sales and Use Tax Division at 334-242-1490 or our toll-free number 1-866-576-6531.

Apply for a Simplified Sellers Use Tax account online through My Alabama Taxes; click the “Obtain a new tax account” link.

Guidance for Vendors Drop-shipping into Alabama and Remote Sellers:

The State of Alabama does not issue sales tax licenses (resell certificates) to remote businesses (no business locations in Alabama).  Alabama views drop-shipping as two separate transactions.  The transaction between the vendor/drop-shipper and reseller is one transaction and the transaction between the reseller and the Alabama customer is a separate transaction.  It is Alabama’s stance that the vendor/drop-shipper should accept the home-state issued resell certificate when the reseller is purchasing to resell to a customer located in Alabama (drop-shipped to an Alabama address).  If the sale between the remote reseller and the Alabama customer is considered taxable, the remote reseller is responsible for collecting and remitting taxes to Alabama.

Rule 810-6-1-.144.03:  All buyers of retail property for resale purposes are entitled to purchase at wholesale, tax-free, the property they resell as a regular course of business when they have secured the sales tax license required by law.  This rule also applies to retailers located outside Alabama when they have secured the sales tax license required by law in the state in which they are located.  (Section 40-23-6) (Adopted August 10, 1982, readopted through APA effective October 1, 1982)

SSUT   FAQs  

Act 2015-448
Act 2017-82
Act 2018-539
Act 2019-382
Notice:  Act 2019-382 – SSUT Amnesty, Class Action Protection, and Clarification of Nontaxable Transactions (07/09/2019)
Notice:  Tax Guidance for Online Sellers (07/03/2018)
Notice:  Marketplace Facilitators and Sellers (05/01/2018)
SSUT Law (§40-23-191 through §40-23-199)
SSUT Rules (810-6-2-.90.02,  810-6-2-.90.03, and 810-6-2-.90.04)
Updated laws and rules will be available in the near future.

 

Simplified Sellers Use Tax Information for Local Governments

Act 2015-448, entitled the “Simplified Sellers Use Tax Remittance Act” allows “eligible sellers” to participate in a program to collect, report and remit a flat 8 percent Simplified Sellers Use Tax (SSUT) on sales made into Alabama. An “eligible seller” is one that sells tangible personal property or a service into Alabama from an inventory or location outside the state and who has no physical presence and is not otherwise required by law to collect tax on sales made into the state.

Act 2015-448’s provisions only apply to sellers who volunteer to collect and remit Alabama’s sales tax, but who are not required to do so.

Participation in the program shall be by election of the eligible remote seller and only those eligible remote sellers accepted into the program as set out in the Act shall collect and remit the SSUT.

Participation in the program shall not be construed as subjecting an eligible remote seller to franchise, income, occupation, or any other type of taxes or licensing requirements levied or imposed by the state of Alabama or any locality.

The flat 8 percent sales tax applies to all sales regardless of the locality and or rate of tax of the locality into which the product is shipped in Alabama.

The Department is required by law to distribute the localities’ portion of the taxes on a quarterly basis to all municipalities and counties based on population.  Effective July 1, 2017, Act 2017-82 allows the Department to initiate monthly distributions.  The July 2017 distribution will include all collections for the prior quarter (April – June 2017), and the next distribution will be August 2017 and every month thereafter.  No specific seller’s payments will be associated with any particular locality, regardless of the locality into which any product is shipped.

No eligible remote seller’s tax return information concerning these deposits will be reported to any locality. Localities will simply receive an electronic deposit of their share of these funds, without tax returns, account numbers or other data of any kind. It is suggested that a locality create an “AL Simplified Sellers Use” account to post the funds to for balancing purposes.

Electronic deposits of the SSUT will be noted on the locality’s bank deposit as “SIMPLESELL”.

The department will provide a list of SSUT account holders on the website disclosing the start and cease date of participants in the program, as applicable.  This list is provided so that the local governments are aware of the taxpayers who fall under the protection of the SSUT Act. Any further information regarding a SSUT account holder must be requested through the exchange of information agreement procedures.

The collection and remittance of the SSUT relieves the eligible seller and the purchaser from any additional state and local sales or use taxes on the transaction.

Eligible sellers participating in the program shall not be subject to audit or review by any Alabama locality.

In the event that a change in federal law, whether it be federal legislation or decision of the U.S. Supreme Court, removes current federal limitations on state’ ability to enforce their sales and use tax jurisdiction against businesses that lack an instate physical presence, the provisions of this act will continue to apply to any eligible seller who has been approved by the department as a participant in the program and to any taxpayer who has paid or pays the simplified sellers use tax authorized under the act provided the eligible seller continues to collect, report, and remit the simplified sellers use tax and otherwise complies with all procedures and requirement of the program.

Eligible sellers participating in the program shall be granted amnesty for any uncollected remote use tax that may have been due on sales made to purchasers in the state for the twelve-month period preceding the effective date of the eligible sellers’ participation in the program.

Amnesty will preclude (prohibit) assessment for uncollected SSUT together with any penalty or interest for sales made during the twelve-month period prior to the effective date of the eligible seller’s participation in the program.

Amnesty is not available to any eligible seller with respect to any matter or matters for which the eligible seller has received notice of the commencement of an audit and the audit is not yet finally resolved, including any related administrative and judicial processes.