Licensing and Renewal Requirements
If a remote seller or out-of-state marketplace facilitator meets the economic threshold for sales into Arizona, it will need a transaction privilege tax (TPT) license. By contrast, marketplace facilitators and retailers with a physical presence in Arizona must obtain a TPT license, irrespective of any threshold. Businesses may register for a TPT license through www.AZTaxes.gov. For remote sellers or out-of-state marketplace facilitators, the cost of a TPT license is $12 and it will be valid for the calendar year in which it is issued but may be renewed for subsequent years at no additional cost.
Marketplace facilitators and retailers with a physical presence in Arizona pay the standard fees for a license, which include the state fee of $12 plus any municipal license fees. These marketplace facilitators and retailers with Arizona presence will also be responsible for any municipal licensing renewal fees.
Regardless of its physical presence with Arizona, a marketplace seller is not required to obtain a TPT license if it only sells its products through marketplace facilitators.
A remote seller or marketplace facilitator will remit tax in the month following 30 days from when the threshold was met, and continue for the remainder of the calendar year.
For example:
| Threshold Met | 1st Remittance |
| February 15 | April 1 |
For remote sellers and marketplace facilitators with no physical presence in Arizona, TPT is not applied retroactively on sales made before the threshold was met and before the first day of the month in which it must begin to file and remit TPT. However, if a business is currently collecting TPT on sales, it must remit those taxes to the department, regardless of whether it meets the threshold or not. A remote seller or marketplace facilitator that met the economic nexus threshold in the previous year, or meets it during the current year, will be required to collect for the following year. If the remote seller or marketplace facilitator does not meet the threshold in the current and the previous calendar year, it may choose to cancel its license until it meets the threshold again. If and when it does meet the threshold again, it should contact the E-Commerce Compliance and Outreach (ECCO) team to reinstate its license.
If a remote seller becomes a marketplace facilitator (i.e., by selling goods on behalf of third parties and collecting and remitting payment to the third parties), it will be required to contact the ECCO team to have its designation changed accordingly. See the FAQs for further information.
For definitions of a remote seller or marketplace facilitator, review the Out-of-State Sellers page.
Review the economic nexus threshold matrix to determine if you must file and remit TPT. See the Economic Threshold page.
The table below provides examples that could apply when obtaining a TPT license. You may obtain a single license or multiple licenses, depending on your business model. Please note that the examples below are not exhaustive.
Remote Seller or Marketplace Facilitator with No Physical Presence in Arizona
| License Options | One License | One Marketplace** – One License | One Website – Two Licenses | Two Websites – Two Licenses | ||
| Sellers | Remote Seller - includes sales by phone, fax or mail, etc | Out-of-State Marketplace Facilitator | Out-of-State Marketplace Facilitator: separate TPT license - 3rd party sales | Out-of-State Marketplace Facilitator: separate TPT license - own sales | Out-of-State Marketplace Facilitator: separate TPT license - 3rd party sales (website 1) | Out-of-State Marketplace Facilitator: separate TPT license - own sales (website 2) |
| Reporting Business Code* | 600 Series Codes | 600 Series Codes | 600 Series Codes | 600 Series Codes | 600 Series Codes | 600 Series Codes |
| Fees | $12 | $12 | $12 | $12 | $12 | $12 |
* See rate table for applicable 600 series business codes which may apply.
** A marketplace is a physical or electronic place, platform or forum, including a store, booth, internet website, and catalog or dedicated sales software application, where products are offered for sale. A marketplace may take orders in many ways, including by phone, fax, mail or website.
Remote Seller or Marketplace Facilitator With Physical Presence in Arizona
| License Options | One License | One Marketplace** – One License | One Website – Two Licenses | Two Websites – Two Licenses | ||
| Sellers | Retailer in Arizona - includes sales by phone, fax or mail | Marketplace Facilitator in Arizona | Marketplace Facilitator: separate TPT license 3rd party sales | Marketplace Facilitator: separate TPT license own sales | Marketplace Facilitator: separate TPT license - 3rd party sales on website | Marketplace Facilitator: separate TPT license - own sales at brick and mortar location and online sales |
| Reporting Business Code* | 017 and associated codes | 017 and associated codes; and 600 series codes | 600 Series Codes | 017 and associated codes | 600 Series Codes | 017 and associated codes |
| Fees | $12 + city fees | $12 + city fees | $12 | $12 + city fees | $12 | $12 + city fees |
* See rate table for applicable 600 series business codes which may apply.
** A marketplace is a physical or electronic place, platform or forum, including a store, booth, internet website, and catalog or dedicated sales software application, where products are offered for sale. A marketplace may take orders in many ways, including by phone, fax, mail or website.
Registration
Remote Seller/Marketplace Facilitator Legislation takes effect on October 1. Register with ADOR today.
How to register:
- Create a user account on AZTaxes.gov.
- Log into AZTaxes.gov and click Business Registration.
- Complete an Arizona Remote Seller/Out-of-State Marketplace Facilitator Tax Application by clicking Register New Business Remote Seller/Out-of-State Marketplace Facilitator.
- Complete the fields and indicate that you are a Remote Seller or Marketplace Facilitator in the License Type of the application.
- Once submitted, you will receive a Confirmation Number and your application will being processing.
Current registered taxpayers that meet the definition of a remote seller or marketplace facilitator will be able to start converting their licenses with ADOR on September 9, 2019. Please contact a Licensing Specialist at 833-AZESALE (833-293-7253), option 4 who will assist you with this.
View our YouTube tutorial.
Arizona cities generally require anyone selling at retail within their jurisdiction to obtain a city business license and a city privilege tax license.
Remote sellers and marketplace facilitators with no physical presence in Arizona are not required to obtain any city business licenses.
Although remote sellers and marketplace facilitators are required to obtain a transaction privilege tax license, they will be registered for each municipality selected through the Arizona Department of Revenue’s licensing process; however, no municipal fees will be applied.
The cost of a license for state, county and city privilege tax registration for remote sellers and marketplace facilitators with no physical presence in Arizona is $12.