For fully remote sellers, sales tax compliance in Alabama can feel daunting. However, just prior to Wayfair, Alabama created the Simplified Sellers Use Tax system. Today, remote sellers with economic nexus in Alabama can apply to participate. Once accepted, their transactions become subject to a special flat rate (currently 8%), which represents an amalgam of state and local taxes. Regardless of destination locality, transactions are subject to the same flat rate. By opting to collect and remit at the flat rate, they do not need to worry about special local filing or the complex local rate structure. If the flat rate happens to be greater than the rate their purchaser would otherwise pay, the purchaser may apply for a refund or credit from the state. This is truly a meaningful simplification.
Source: SOVOS
