Online sellers operating in Arkansas have specific sales tax obligations, including:

1. Economic Nexus Compliance: If an online seller’s gross sales exceed $100,000 annually to Arkansas consumers, they must register for a sales tax permit and collect and remit Arkansas sales tax.
2. Registration: Register with the Arkansas Department of Finance and Administration (DFA) to obtain a sales tax permit.
3. Tax Calculation: Accurately calculate the appropriate sales tax rates, combining state, county, and city rates based on the buyer’s location.
4. Tax Collection: Collect sales tax at the point of sale for all taxable physical goods and digital products.
5. Remittance: Regularly remit the collected sales taxes to the DFA according to the assigned filing frequency (monthly, quarterly, or annually).
6. Marketplace Facilitator Compliance: If selling through online marketplaces like Amazon or eBay, these platforms are required to collect and remit sales tax on behalf of sellers, provided they meet the $100,000 threshold.
7. Record-Keeping: Maintain accurate records of all sales transactions, tax collected, and remittance to support compliance and audits.
8. Use Tax Reporting: Report and remit use tax on out-of-state purchases used within Arkansas if applicable.
9. Stay Updated: Monitor any changes in tax laws or rates to ensure ongoing compliance with Arkansas’s sales tax regulations.

By adhering to these obligations, online sellers can ensure compliance with Arkansas sales tax laws, avoiding penalties and fostering smooth business operations.