Selling a Product (includes service/repair businesses that provide parts/materials)

Selling a Product (includes service/repair businesses that provide parts/materials)

If you plan to be in the business of selling tangible personal property – whether wholesale or retail, parts with labor,* from your home, over the Internet, at a swap meet, craft show, special event, etc., you will generally be subject to transaction privilege (sales) tax (TPT)/licensing under the Retail and/or Use Tax classifications. The use tax is imposed upon the purchaser of tangible personal property which is used, stored, or consumed in Arizona when the sale was not subject to the transaction privilege tax. For more information, see "Engaging in activities subject to transaction privilege (sales)/use tax" below or click here. (23)

 

Additional Information:

*Charges for installation labor on items that are not to be attached to real property are exempt from tax. Charges for retail labor must be clearly listed separately on invoices and records. Otherwise, you will owe tax on the total invoice where parts and labor are not separately stated.

Arizona Department of Revenue, Publications: 602 Retail, 610 Use Tax
Arizona Department of Revenue:  Retail Sales Subject to TPTNexus 

Arizona Department of Agriculture, Weights and Measures Services Division: Retail Price Posting and Price Verification: In Arizona, regulations require that prices be posted for items that are for sale or offered or exposed for sale. All items shall have a price marked or posted for the consumer in a conspicuous manner unless the item is behind a service counter and only available for sale with the assistance of a salesperson. (23)

U.S. Consumer Product Safety Commission (CPSC): Resale/Thrift Stores: CPSC’s laws and regulations apply to anyone who sells or distributes consumer products. This includes thrift stores, consignment stores, charities, and individuals holding yard sales and flea markets. (23)

U.S. Consumer Product Safety Commission (CPSC), Business & Manufacturing: The Consumer Product Safety Improvement Act (CPSIA)If you are a manufacturer, importer, distributor, or retailer of consumer goods, all of your products must comply with the CPSIA and other laws enforced by the CPSC. (23)