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:

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.

Renewals

Do I need to renew? For 2021 and beyond renewals:

Out-of-state businesses should determine if the business meets the following thresholds for sales to customers in Arizona in either the current alendar year. 

• Marketplace facilitators: $100,000
• Remote Sellers: $100,000

Click here for remote seller. Click here for marketplace facilitator.

Registration 

How to register:

1. Create a user account on AZTaxes.gov.
2. Log into AZTaxes.gov and click Business Registration.
3. Complete an Arizona Remote Seller/Out-of-State Marketplace Facilitator Tax Application by clicking Register New Business Remote Seller/Out-of-State Marketplace Facilitator.
4. Complete the fields and indicate that you are a Remote Seller or Marketplace Facilitator in the License Type of the application.
5. Once submitted, you will receive a Confirmation Number and your application will being processing.
6. Once your registration is complete, use this step-by-step guide to verify your license type.

View our YouTube tutorial.