When selling items in the state of Arkansas, you may be required to pay sales tax. However, if you qualify for a resale certificate in Arkansas AR, you can avoid this tax. To get a resale certificate, you will need to fill out an application and provide some basic information about your business. The threshold for nexus is $100,000 in sales or 200 transactions within a 12-month period. The sales tax rate in Arkansas is 6.500%.
To apply for a resale certificate in Arkansas AR, you will need to provide your Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN). You will also need to provide your business identification information, including your business entity type and the nature of your business. Finally, you will need to provide the NAICS code for your industry.
Arkansas – https://atap.arkansas.gov/_/#7
Sales tax rate – 6.500%
Information required to register for a sales tax permit in the state of Arkansas
1) SSN or ITIN number
2) Business identification information
3) Business entity type
4) Nature of your business
5) NAICS Code
Certain purchases and rentals can be made without the need to pay sales tax. You can use nails, fabric and wood to make a chair, or items that you will rent out as tangible personal property, real property, or services.
A resale tax exemption certificate is required to rent or purchase a property that falls within this category. This document is required to make such a purchase or rental, so it’s important to keep it on hand.
If you resell an item that you’ve purchased, you may need to report use taxes on the item. Similar to sales taxes, use taxes apply when merchandise is brought into your state and used there.
When it comes to getting a Arkansas resale sales tax exemption certificate, there are a few things that vendors need to know. First, vendors don’t need to request one from purchasers. The invoice should clearly identify exempt items. The annual resale certification is only valid for items that are exempt from tax based on their use. That means that if you purchase something for personal use but then later sell it as part of your business, you can use this certificate for those transactions.
An Annual Resale Certificate can be accepted by a selling dealer if it has only one owner and no d/b/a. This type of certificate is valid for any type of transaction (store, e-commerce). In addition, the selling dealer can continue to sell tax-exempt products (for example, on a charge account or cash on delivery basis) to this customer.
This certificate is also known as a tax-exempt certificate and it must be obtained by the business, that intends to buy products with an intention to re-sell. Example: If your business is A and you’re located in Florida, you will need a reseller certificate to be able to sell goods in Florida. Normally reseller’s certificate is valid within the state however there is no clear-cut answer, as a few friendly states do accept certificates from other states, to do business in their own state.
If a reseller certificate is submitted by the business, supplier, or the provider of the service or goods, is authorized not the charge any sales tax, and the liability of sales tax, then lies with the re-seller, based on the value of the final sales. Example – $100 worth of items are sold by business A to business B, and because a reseller certificate was provided by reseller b (2A) no sales tax is charged in this transaction., however, when the reseller will sell the product for say $200 sales tax must be taxed on $200
The supplier is the owner of the certificate. All steps must be taken to ensure the certificate remains valid.
Arkansas is a landlocked state in the South Central United States. It is bordered by Missouri to the north, Tennessee and Mississippi to the east, Louisiana to the south, and Texas and Oklahoma to the west. Its name is from the Osage language, a Dhegiha Siouan language, and referred to their relatives, the Quapaw people. The state’s diverse geography ranges from the mountainous regions of the Ozark and Ouachita Mountains, which make up the U.S. Interior Highlands, to the densely forested land in the south known as the Arkansas Timberlands, to the eastern lowlands along the Mississippi River and the Arkansas Delta.
Arkansas is the 29th largest by area and the 34th most populous state, with a population of just over 3 million at the 2020 census. The capital and most populous city is Little Rock, in the central part of the state, a hub for transportation, business, culture, and government. The northwestern corner of the state, including the Fayetteville–Springdale–Rogers Metropolitan Area and Fort Smith metropolitan area, is a population, education, and economic center. The largest city in the state’s eastern part is Jonesboro. The largest city in the state’s southeastern part is Pine Bluff.
Previously part of French Louisiana and the Louisiana Purchase, the Territory of Arkansas was admitted to the Union as the 25th state on June 15, 1836. Much of the Delta had been developed for cotton plantations, and landowners there largely depended on enslaved African Americans’ labor. In 1861, Arkansas seceded from the United States and joined the Confederate States of America during the American Civil War. On returning to the Union in 1868, Arkansas continued to suffer economically, due to its overreliance on the large-scale plantation economy. Cotton remained the leading commodity crop, and the cotton market declined. Because farmers and businessmen did not diversify and there was little industrial investment, the state fell behind in economic opportunity. In the late 19th century, the state instituted various Jim Crow laws to disenfranchise and segregate the African-American population. During the civil rights movement of the 1950s and 1960s, Arkansas and particularly Little Rock were major battlegrounds for efforts to integrate schools.Source