Securing your Arkansas sales tax permit is one of the most important steps you’ll take when launching or scaling a business in the state—especially if you sell online, at events, or across multiple channels. But while the process sounds simple, many guides leave you with more questions than answers.
That’s why we’ve created this no-fluff, high-clarity guide to help you get it right the first time. Whether you’re navigating economic nexus rules or preparing for your first sale, this article breaks down exactly what to do, how to do it, and where others go wrong. And if you’d rather not deal with it all? Hands Off Sales Tax (HOST) has you covered.
Do You Need a Sales Tax Permit?
If you’re selling products or services into Arkansas, the first question is whether your business actually needs a sales tax permit. Here’s a clear breakdown:
Physical Nexus
You must register if you have any in-state presence, including:
- A storefront, office, or warehouse in Arkansas
- Employees, agents, or sales representatives working within the state
- Inventory stored (e.g., Amazon FBA fulfillment centers) in Arkansas
These types of activities establish physical nexus and mandate permit registration.
Economic Nexus
Even without physical presence, you must register if:
- You’ve made over $100,000 in sales into Arkansas, or
- You’ve completed 200 or more separate transactions to Arkansas customers in the current or previous calendar year
This rule applies to remote sellers and marketplace facilitators due to economic nexus laws post-Wayfair.
Special/Temporary Nexus
Selling at fairs, trade shows, or pop-up events in Arkansas—especially if you’re taking orders or collecting payments—can trigger nexus even for temporary operations.
Marketplace Sellers
If you sell via platforms like Amazon, Etsy, or eBay:
- Marketplace facilitators are responsible for collecting and remitting tax on your behalf when thresholds are met
- However, you still need a permit if you meet nexus criteria independently—especially for non-facilitated channels.
Types of Permits & Fees
Here’s a clear overview of Arkansas sales tax permit types and what each costs:
In‑State Sales Tax Permit
- Who Needs It: Businesses with physical or economic nexus in Arkansas
- Fee: $50 per permit, non-refundable
- How to Apply: Complete the AR‑1R Combined Business Tax Registration via the ATAP portal or paper form
- Processing Time: 8–10 business days for approval, permit mailed afterward
Remote Seller Permit
- Who Qualifies: Sellers with economic nexus only (no in‑state physical presence)
- Fee: Free—Arkansas waives the fee for fully remote sellers
- How to Apply: Use the same AR‑1R form in ATAP, but indicate “remote seller” in the process
Combined Business Tax Registration (AR‑1R)
- Used for both in-state and remote permits, and also essential for entrepreneurs purchasing an existing Arkansas business
- Simplifies the process by combining all state-level tax registration on one form
Why These Permits Matter
- The in-state permit gives you full authority to collect and remit Arkansas tax and local municipal taxes.
- The remote seller permit ensures compliance without penalizing you for not having a physical setup in-state.
- Choosing the right permit from the start saves money, prevents processing delays, and keeps your business legally aligned—whether you’re online, at events, or expanding locally.
How to Apply: Step‑by‑Step Guide
Here’s exactly what you need to register for your Arkansas sales tax permit using the ATAP system—smooth, professional, and built for fast compliance.
Step 1: Gather Required Documents
Before you register, make sure you have these on hand:
- Signed lease agreement or bill of sale (if acquiring equipment or real estate)
- Federal EIN (Tax ID number)
- NAICS code describing your primary business activity
- Business start date and full legal address (no P.O. boxes)
Step 2: Register via ATAP Portal
- Visit ATAP and click “Register for a Tax Account”
- Choose the appropriate tax types (e.g., Sales & Use Tax) and specify whether you’re an in‑state or remote seller
- Pay the $50 permit fee for in‑state registration; remote sellers are charged no fee
Step 3: Online vs. Paper Application
- Online (ATAP): Faster—application is processed in about 8–10 business days
- Paper (Form AR‑1R): Takes longer—generally slower turnaround and mailing delays
Step 4: Confirmation & Next Steps
- Once submitted, you’ll get an email confirmation with your tax account number
- The official permit will arrive by mail in ~8–10 business days
With your permit in hand, you’re ready to collect and remit sales tax in Arkansas.
Processing Time & What to Expect
Here’s what to expect after submitting your Arkansas sales tax permit application:
Permit Processing Timeline
- 8–10 business days is the standard turnaround after filing through the ATAP system.
- During this period, you’ll receive an email confirmation with your new tax account number—and you can begin filing returns online right away.
Immediate Portal Access
- The Arkansas Taxpayer Access Point (ATAP) grants instant access post-submission, allowing you to file returns and make payments—even before the physical permit arrives.
No Renewal Hassle
- Once issued, your permit stays active indefinitely—you’re not required to renew annually.
- It only needs closure if you cease operations or move out of state.
That’s it! With your account number, portal access, and eventual mailed permit, you’ll be fully equipped to collect and remit sales tax in Arkansas.
Filing, Remittance & Recordkeeping
Once your Arkansas sales tax permit is active, proper filing and diligent recordkeeping are key to avoiding penalties and staying compliant.
Filing Frequency
The Arkansas Department of Finance and Administration (DFA) assigns your filing schedule based on monthly tax liability:
- Monthly for liabilities over $200
- Quarterly for $25–$200
- Annually if taxes are minimal
All returns are due by the 20th day of the month following the reporting period. Weekend deadlines shift to the next business day.
Electronic Filing & Payment
All filings and payments go through the ATAP portal. Businesses that owe amounts above a set threshold must use Electronic Funds Transfer (EFT). The system covers both filing and remittance in one seamless process.
Zero-Returns Still Count
Even if you had zero sales, you’re required to file a “zero” return for your filing period. Skipping this can result in penalties and raise flags for potential audits.
Record Retention
Maintain thorough records—sales logs, exemption certificates, invoices, and payment receipts—for at least 3–7 years, depending on tax type and DFA revision cycles. This ensures preparedness for potential audits.
Following your filing frequency, using ATAP for online payments, filing zero-return periods, and retaining records protects your business and ensures smooth, worry-free compliance.
Penalties & Audit Triggers
Non-compliance with Arkansas sales tax regulations can lead to serious financial penalties and invite scrutiny from state authorities.
Late Filing & Payment Penalties
- A 5% penalty per month, up to 35%, is charged for filing returns late. Returns over 30 days late carry a minimum penalty of $50, even if no tax is owed.
- Payment delays carry a 1% monthly penalty, also capped at 35%, plus accruing interest.
Missed Zero-Returns
Failing to file a required “zero” return—even with no taxable sales—can trigger audit flags and additional fines, as zero-returns demonstrate active compliance.
Failure to Collect Local Tax
Not collecting applicable local taxes can be flagged during DFA distributions, which reconcile collected taxes. Shortfalls often prompt audit reviews and fines .
Nexus Misreporting
Misclassifying your business nexus—confusing economic vs. physical thresholds—can result in late registrations, retroactive tax liabilities, and increased audit risk, especially if the DFA’s nexus detection unit identifies inconsistencies.
Staying current with filings, submitting all returns—including zero-returns—and accurately reporting nexus are your best defenses. For busy business owners, HOST ensures timely filings, correct taxation, and audit preparedness to eliminate these risks.
How HOST Simplifies the Process
Getting your Arkansas sales tax permit is just one step. Staying compliant—through every filing, rate change, exemption, and audit risk—is where things get complicated. That’s where HOST (Hands Off Sales Tax) becomes your all-in-one solution.
HOST is built for busy entrepreneurs and growing businesses that don’t have time to decode tax law or chase deadlines. Here’s what HOST handles for you:
Complete Registration Support
From selecting the right permit (Sales Tax vs. Remote Seller) to navigating the AR-1R form and ATAP portal, HOST manages the entire setup process.
Filing & Remittance—Done for You
HOST tracks due dates, files on time through ATAP, handles zero-returns, and ensures accurate remittance—monthly, quarterly, or annually.
Marketplace & Multichannel Support
Whether you’re on Amazon, Shopify, or attending live events, HOST syncs sales data to file the correct local and state taxes automatically.
Resale Certificate Compliance
With ResaleCertify, HOST helps you generate valid resale certificates quickly and accurately, ensuring you meet exemption documentation requirements.
Audit-Ready Systems
HOST stores, organizes, and maintains essential records for fast, confident audit responses—before issues arise.
For businesses that want to get sales tax right from day one—and keep it that way—HOST is the expert partner that makes it effortless.
Don’t Let Sales Tax Slow You Down
Getting your Arkansas sales tax permit is essential—but it’s only the beginning. From choosing the right registration type to filing on time, handling exemptions, and preparing for audits, the process demands accuracy and consistency. That’s where most businesses struggle. The good news? You don’t have to do it alone. HOST simplifies every step of sales tax compliance—across Arkansas and beyond. If you’re ready to avoid penalties, save time, and stay 100% compliant without the headache, reach out to HOST today for a personalized consultation and take sales tax off your plate for good.
