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  • What is the difference between sales and sellers use tax?

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 entities located in Alabama. Sellers use tax is imposed on the retail sale of tangible personal property sold in Alabama by entities 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. Learn more regarding Sales & Use Tax accounts.

Related FAQs in Entity Registration

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.

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. Learn more about Sales & Use Tax accounts.