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I'm the bookkeeper for a company that sells toys both in a store in Mobile, Alabama as well as online. Should we be collecting sales tax for clients located in Alabama and other states?
ANSWER
The BIDaWIZ Team's Answer:
Any sales made to clients from Alabama are subject to sales tax similar to in store purchases. However, the local sales tax in Mobile is 4.5%. This would be in addition to the 4% Alabama state tax and the 1.5% Mobile county tax. Any sales made over the internet to a client located in another state are not subject to Alabama sales tax.
References: The Code of Alabama Section 40-23-4
State: Alabama
Sales tax category: Internet Taxation, Tax Nexus
Product/Service: Toys