Are services taxable in Alabama?
Emma Jordan
Published Apr 01, 2026
Services in Alabama are generally not taxable.
Is Alabama a destination sales tax state?
Alabama is a destination-based state. This means you’re responsible for applying the sales tax rate determined by the ship-to address on all taxable sales. For more information, see the Alabama Department of Revenue Simplified Sellers Use Tax.
Does Alabama require a resale certificate?
When retailers purchase products to resell, they often don’t pay sales tax on the purchase. In order to prove a buyer intends to resell the product, they must provide a valid resale certificate to the seller of the goods. The state of Alabama is one of the few states that don’t have a resale certificate.
What items are tax exempt in Alabama?
Sales Tax Exemptions in Alabama Some common items which are considered to be exempt are: prescription drugs, gasoline and motor oil items, seeds which are intended for planting purposes (fertilizer/insecticides/fungicides) agricultural, feed for livestock, and livestock.
How do I get a resale certificate in Alabama?
Unlike many other states, you are not required to fill out a resale certificate. Instead, just a copy of your sales tax license will do the trick. Alabama even allows retailers to accept out-of-state resale certificates. Keep in mind that you are only allowed to buy items you intend to resell without paying sales tax.
Do you need a sellers permit to sell online in Alabama?
Most businesses operating in or selling in the state of Alabama are required to purchase a resale certificate annually. Even online based businesses shipping products to Alabama residents must collect sales tax. The certificate also allows you to buy items without paying sales tax that you will be reselling.
How do I get a free tax ID number in Alabama?
Apply for an FEIN online or contact the IRS at 1-800-829-1040. Is an FEIN needed to apply for an alabama tax account? Yes, an FEIN is required to apply for an Alabama tax account, if the entity is a Corporation, Partnership, Single Member LLC, etc.
