Haven't heard about Arizona's "TPT Simplification?" You're not alone. As of January 1, 2015 significant changes to the state's sales tax code will go into effect, and you will be required to follow them!
How could the changes affect you?
- You may not be considered a prime contractor under the new code
- You may have to renew or cancel your license by December 31, 2014
- You may have a new filing frequency (monthly, quarterly, annually)
- You may have to pay RETAIL sales tax when purchasing materials
- You may have to separately report & pay tax on materials you purchased
- You may have to change how you file and report your sales and deductions
- You may have to provide new paperwork to subcontractors and vendors
- You may have to get new paperwork from Prime Contractors
- You may not have to file sales tax returns at all in 2015
- You may have to file your returns electronically, or earlier than you do currently
The first step in determining how you may be affected by the revised sales tax code is to carefully ascertain whether you still qualify as a Prime Contractor.
- Read our 2015 TPT Changes Overview.
This brief guide provides a basic test along with next steps that may be necessary to prepare your company for the changes.
- Reading about the changes at http://www.azdor.gov/TPTSimplification.aspx
- Reading the definitions and examples posted in the Arizona Transaction Privilege Tax Notice TPN 14-1
For assistance in interpreting the Arizona sales tax (TPT) changes, determining how they apply to you, and what to do next, feel free to contact me.