Alabama Issues Notice on Changes to Simplified Sellers Use Tax Law

Alabama has issued a notice regarding legislation that changes the Simplified Sellers Use Tax program, effective July 1, 2017. The legislation allows the Alabama Department of Revenue (DOR) to initiate monthly distributions of the Simplified Sellers Use Tax collectionsto the localities. The DOR 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. As of July 1, 2017, this information will be made publicly available on the DOR’s website. The removal of the 6-month deferral restriction on eligible sellers takes effect July 1, 2017. A participant in the program may remain in the program unless the seller establishes nexus via a physical location or storefront, place of inventory, or affiliation with another business with a physical presence making retail sales in Alabama. The invoice statement requirement is modified to also allow for a statement on the website of the eligible seller. The eligible seller shall provide Alabama customers with a statement or invoice showing that the simplified sellers use tax was collected and is to be remitted on the purchaser’s behalf.(Notice, Alabama Department of Revenue, June 29, 2017)

Posted on July 26, 2017