Registering for an Arkansas sales tax permit is a crucial step for any business that sells taxable goods or services in the state. Whether you’re an in-state seller with a physical presence or a remote seller meeting the state’s economic nexus requirements, understanding the registration process is essential for ensuring compliance with Arkansas tax laws. The Arkansas sales tax permit grants businesses the legal authority to collect and remit sales tax, helping you avoid costly penalties and legal issues.

In this guide, we’ll walk you through everything you need to know about obtaining your Arkansas sales tax permit, including the steps to register, common mistakes to avoid, and key considerations specific to both in-state and remote sellers.

Key Takeaways

  • Who Needs to Register: Businesses with a physical presence in Arkansas and remote sellers exceeding $100,000 in sales or 200 transactions annually.
  • What Is an Arkansas Sales Tax Permit: Legal authorization from the Arkansas Department of Finance and Administration to collect and remit sales tax.
  • Registration Process: Apply online via Arkansas Taxpayer Access Point (ATAP) or submit paper forms with a $50 non-refundable fee.
  • Filing Frequency: Typically monthly, quarterly, or annually, assigned based on estimated sales volume.
  • Marketplace Seller Exemption: Sellers exclusively using marketplace facilitators who collect tax are not required to register.
  • Common Mistakes: Incorrect business classification, missing info, misunderstanding nexus, and overlooking local tax obligations.
  • Post-Registration: Display your permit, collect correct sales tax rates, file returns on time (including zero returns), and maintain detailed records.
  • Special Rules: Digital products and SaaS may have unique tax treatment; keep updated on specific Arkansas tax laws.

What is a Sales Tax Permit in Arkansas?

An Arkansas sales tax permit (also known as a gross receipts tax permit) is a legal authorization that allows businesses to collect sales tax on taxable goods and services sold within the state of Arkansas. This sales tax permit in the state of Arkansas is essential for businesses that sell tangible personal property or provide certain services subject to Arkansas sales tax.

The permit serves two primary purposes:

  1. It legally authorizes your business to collect sales tax from customers.
  2. It establishes your relationship with the Arkansas Department of Finance and Administration for reporting and remitting collected taxes.

Both in-state sellers with physical locations and remote sellers meeting certain thresholds need to pay attention to sales tax permit requirements and sales tax registration Arkansas. 

The state uses these permits to track businesses responsible for collecting and remitting sales tax, guaranteeing proper revenue collection for state and local services.

Do You Need to Register for an Arkansas Sales Tax Permit?

Determining whether you need a sales tax registration in Arkansas depends on several factors. Use this checklist to see if your business requires registration:

  • In-state sellers: If you sell tangible personal property or provide taxable services within Arkansas, you must register for a sales tax permit.
  • Remote sellers: Out-of-state businesses with no physical presence in Arkansas must register if they exceed either:
    • More than $100,000 in gross Arkansas sales in the current or previous calendar year
    • 200 or more separate transactions in Arkansas in the current or previous calendar year.
  • Marketplace facilitators: Platforms that facilitate sales for third-party sellers must collect and remit sales tax if they meet the economic nexus thresholds above.
  • Marketplace sellers: Interestingly, if you sell exclusively through marketplace facilitators (like Amazon or eBay) who collect tax on your behalf, you are not required to obtain an Arkansas sales tax permit.

Economic nexus and physical presence are both qualifying factors for sales tax obligations in Arkansas. Having a physical location, employees, inventory, or representatives in Arkansas establishes a physical nexus, while meeting the sales thresholds creates economic nexus for remote seller sales tax registration in Arkansas.

For official guidance, you can refer to the Arkansas Department of Finance and Administration website, which provides detailed information on sales tax requirements and obligations.

Step-by-Step: How to Get a Sales Tax Permit in Arkansas?

Obtaining a State of Arkansas sales tax permit is a structured process. Here’s a detailed, step-by-step guide to make sure that you complete your Arkansas sales tax registration accurately and efficiently:

Step 1: Gather Necessary Information

Before starting, collect all required business and personal details. You’ll need:

  • Legal business name and DBA (if applicable)
  • Federal EIN or SSN/ITIN
  • Business address and contact info
  • NAICS code (business activity classification)
  • Owner/officer names, addresses, and SSNs/ITINs
  • Bank account info for sales tax remittance (recommended)
    Having this information ready will streamline your application process.

Step 2: Access ATAP (Arkansas Taxpayer Access Point)

Go to the official Arkansas Taxpayer Access Point website, which is the central portal for all Arkansas tax registrations and filings.

Step 3: Create an ATAP Account

If you’re a new user, click “Sign Up” and follow the prompts to set up your account. You’ll need to verify your email address to activate your account.

Step 4: Select Registration Type

Once logged in, choose “New Business Registration” and select the option to register for a sales tax permit (Arkansas refers to this as a “Gross Receipts Tax” permit).

Step 5: Complete the Application

Fill out the “Application for Arkansas Business Permit.” Provide all requested details about your business structure, activities, ownership, and projected sales. Double-check for accuracy, as errors can delay processing.

Step 6: Pay the Application Fee

Submit the $50 non-refundable fee online via credit card or ACH transfer. This fee is required for all new Arkansas sales tax permit applications.

Step 7: Submit and Wait for Processing

After submitting your application and payment, the Arkansas Department of Finance and Administration will review your information. Processing typically takes about 2 weeks. During this time, monitor your email (including spam/junk folders) for status updates or requests for additional information.

Step 8: Receive Your Permit

Once approved, your Arkansas sales tax permit will be mailed to the business address you provided. Make sure this address is accurate and not a PO box, as physical delivery is required.

Key Tips:

  • You do not need to renew your Arkansas sales tax permit; it remains valid as long as your business operates.
  • If you have questions or need assistance, contact the Arkansas Department of Finance and Administration directly.

What Information Do You Need to Register?

Before beginning your Arkansas sales tax permit application, gather these essential details:

Business Identification Information

  • Legal business name
  • DBA (Doing Business As) name, if applicable
  • Business address (physical and mailing)
  • Business start date in Arkansas
  • Federal Employer Identification Number (EIN)
  • Business phone number and email address

Owner/Officer Information

  • Names of owners, partners, officers, or members
  • Social Security Numbers (SSN) or Individual Taxpayer Identification Numbers (ITIN)
  • Home addresses
  • Contact information

Business Classification Details

  • Business entity type (sole proprietorship, partnership, LLC, corporation, etc.)
  • NAICS Code (North American Industry Classification System)
  • Detailed description of your business activities and products/services sold

Sales Information

  • Estimated monthly taxable sales
  • Counties and cities where you’ll be conducting business
  • Sales tax filing frequency preference (if applicable)

Have this information ready before you start the application process to ensure smooth completion of your Arkansas sales tax registration.

How Much Does It Cost to Register for a Sales Tax Permit in Arkansas?

Registering for a sales tax permit in Arkansas involves the following:

  • One-time, non-refundable fee: $50
  • Payment methods: Can be paid through the Arkansas Taxpayer Access Point (ATAP) or with a paper application.

This fee is considered standard when compared to other states. Some states offer free registration, while others charge fees ranging from $20 to over $100.

  • No permit renewals: The $50 fee is a one-time cost, with no need for renewals.

However, keep in mind that additional business registration fees may apply depending on your business type or if other specialized permits are needed.

For more details on any potential extra costs related to your specific business, visit the Arkansas Department of Finance and Administration.

How Long Does It Take to Get Approved?

Once you’ve submitted your completed application for an Arkansas sales tax permit, here’s what you can expect:

  • Processing time: Approximately 2 weeks
  • Application methods: Online through ATAP or paper application

The Arkansas Department of Finance and Administration processes applications in the order received. After approval, your physical permit will be mailed to the business address you provided.

Note: You’ll receive email confirmations throughout the process. Make sure to check your spam or junk folders if you don’t see them in your inbox.

Unlike some states that offer immediate provisional approval, Arkansas completes the full review process before issuing permits.

For planning purposes, businesses should submit their Arkansas sales tax registration at least two weeks before they intend to begin collecting sales tax from customers.

Common Mistakes to Avoid When Registering

When completing your Sales Tax Permit application for Arkansas, watch out for these frequent errors:

  • Selecting the wrong business entity type: Choosing the incorrect business entity (e.g., LLC, sole proprietorship, corporation) can create tax filing complications and may result in incorrect tax calculations. It’s essential to select the entity type that aligns with your business structure.
  • Misunderstanding marketplace facilitator obligations: If you sell exclusively through marketplaces (like Amazon, eBay, or Etsy) that collect and remit sales tax for you, you may not need to obtain a separate sales tax permit. Many businesses mistakenly apply for a permit when they’re exempt due to the marketplace facilitator exemption.
  • Providing incomplete business information: Missing key details such as your legal business name, federal tax ID number, or business address can delay the processing of your application. Make sure to double-check all the information provided to avoid unnecessary setbacks.
  • Entering incorrect NAICS codes: The NAICS (North American Industry Classification System) code classifies your business activities. Entering the wrong code can result in improper tax treatment or complications down the line. Make sure that the code you provide accurately represents your business’s operations.
  • Underestimating nexus requirements: Many businesses overlook the importance of understanding sales tax nexus. You may have triggered economic nexus in Arkansas if you exceed $100,000 in gross sales or 200 transactions in the state. Failing to realize when you’ve met these sales tax thresholds can lead to non-compliance and penalties.
  • Failing to include all responsible parties: The application requires you to list all owners, officers, or members who hold significant control over the business. Missing any key individuals can result in an incomplete application.
  • Not updating contact information: It’s crucial to provide up-to-date contact information, including your business’s mailing address, so that you can receive important documents such as your permit and any tax-related notices.
  • Overlooking local tax obligations: While Arkansas state sales tax is the primary focus, many cities and counties within the state have local taxes that also need to be collected. Failing to account for these local obligations could result in penalties or missed taxes.
  • Missing the application fee: The $50 fee is required when submitting your application. If this fee is missing, your application will not be processed, causing further delays in obtaining your sales tax permit.

Avoiding these pitfalls will help make sure of a smooth registration process for your Arkansas sales tax permit.

What Happens After You Register?

After your sales tax registration Arkansas is approved and you receive your permit, several important next steps follow:

First, you’ll need to display your sales tax permit at your business location if you have a physical presence in Arkansas. For online businesses, keep it in your records.

The Department of Finance and Administration will assign you a filing frequency based on your estimated sales volume. This will typically be monthly, quarterly, or annually.

Here is a table, highlighting the typical filing frequencies for sales tax in Arkansas based on estimated sales volume: 

Filing FrequencyDescriptionTypical Businesses
MonthlyDue by the 20th of the following monthHigh-volume sellers
QuarterlyDue by the 20th of the month following the quarter’s endMedium-volume sellers
AnnuallyDue by January 20th of the following yearLow-volume sellers

Most new businesses start with monthly filing requirements.

  • You will receive access credentials for the ATAP system after registering for your Arkansas sales tax permit.
  • Filing online via ATAP is the fastest and most recommended method to submit your Form ET-1 returns and payments.
  • If you prefer paper forms, you must request the ET-1 by phone and wait for it to arrive by mail.

To stay compliant, you must:

  • Collect the correct sales tax rate for each transaction (state rate plus applicable local rates)
  • File returns by the due date, even if you had no sales (zero returns)
  • Remit all collected taxes on time
  • Keep detailed records of all sales and collected taxes

Missing filing deadlines can result in penalties and interest charges, even if you didn’t collect any sales tax during the period. Setting calendar reminders for these important deadlines is highly recommended.

Special Considerations for Out-of-State or Remote Sellers

Remote sellers facing Arkansas sales tax permit obligations should consider the following:

  • Economic Nexus Requirements:
    Beginning July 1, 2019, Arkansas established an economic nexus for out-of-state sellers. If your business has no physical presence in Arkansas but exceeds either:
    • $100,000 in gross sales, or
    • 200 transactions delivered into Arkansas; during the current or previous calendar year, you must register for and collect Arkansas sales tax.
  • Registration Process: Arkansas remote seller sales tax registration​ follows the same process as in-state registration through the ATAP system. Be sure to indicate that you’re an out-of-state seller with no physical presence.
  • Marketplace Seller Exemption: Arkansas offers an exemption for marketplace sellers. If you sell exclusively through marketplace facilitators (like Amazon, eBay, or Etsy) that collect and remit sales tax on your behalf, you are not required to obtain an Arkansas sales tax permit. This can reduce compliance burdens for smaller sellers.
  • Tracking Sales: Online businesses should carefully monitor their Arkansas sales to make sure that they don’t exceed the economic nexus thresholds. Once thresholds are met, registration should happen promptly to avoid penalties.
  • Special Tax Treatment for Digital Products and SaaS: In Arkansas, digital products and SaaS have specific tax treatment. Notably, SaaS is not considered a taxable service in the state.

Resources & Where to Register

Here’s where to find everything you need for Arkansas sales tax permit registration:

Official Registration Portal:

  • Arkansas Taxpayer Access Point (ATAP): https://atap.arkansas.gov/. This is the primary site for online registration, filing returns, and managing your account.

Key Resources:

Important Forms:

Contact Information:

  • Sales and Use Tax Section: (501) 682-7104
  • Taxpayer Assistance: (501) 682-7750

For businesses managing multi-state registrations or seeking streamlined compliance, Commenda offers a comprehensive sales tax platform. Commenda simplifies the registration process and ongoing tax management for businesses operating in Arkansas and beyond, providing automated solutions for nationwide compliance needs.

Simplify Sales Tax Compliance with Commenda

Simplify Arkansas sales tax compliance with Commenda. Our Global Sales Tax Platform streamlines the entire process, from registration to ongoing remittance. We automatically track your sales data to determine when you need to register and make sure that you meet tax thresholds at the right time.

Remote sellers benefit from our expertise in economic and physical nexus rules. After registration, we handle tax remittance, filing deadlines, and payments on your behalf. With our intuitive dashboard, you’ll have complete visibility into your compliance status. Let Commenda transform sales tax compliance into a smooth, automated process, so you can focus on growing your business. Schedule a demo!