Arkansas sales tax codes and rates
Arkansas's state sales tax rate is 6.5%; county and city rates come on top and are not included. A Nefin company that sells into Arkansas gets 5 sales codes, each named after the line of the ET-1 it fills, so the return's figures add up as you invoice. Purchases you owe use tax on go under AR-UseTax, and Nefin works out the use tax due.
Arkansas codes from the ET-1
Each code is “AR-” plus the line it fills on the ET-1. Rates are the state rate only; add local rates in Settings, VAT rates, where you collect them.
| Code | What it covers | Rate |
|---|---|---|
| AR-WS1-3 | AR taxable sales 6.5% (ET-1 Worksheet WS-1 Line 3) | 6.5% |
| AR-WS1-2c | AR sales for resale (WS-1 Line 2c) | 0% |
| AR-WS1-2h | AR sales to US government (WS-1 Line 2h) | 0% |
| AR-WS1-2j | AR sales to exempt organizations (WS-1 Line 2j) | 0% |
| AR-WS1-2o | AR other legal deductions (WS-1 Line 2o) | 0% |
| Code | What it covers | Rate |
|---|---|---|
| AR-UseTax | AR purchases subject to use tax (ET-1 field; line no. unconfirmed) | 0% |
Arkansas in the tax books
Nefin’s sales tax book has one row per invoice and one column per ET-1 line; these are the Arkansas columns and the totals worked out from them.
Sales Tax Book
Arkansas - ET-1
- [AR-WS1-3]Taxable sales (WS-1 Line 3)
- [AR-WS1-2c]Sales for resale (WS-1 Line 2c)
- [AR-WS1-2h]Sales to U.S. Government (WS-1 Line 2h)
- [AR-WS1-2j]Sales to exempt organizations (WS-1 Line 2j)
- [AR-WS1-2o]Other legal deductions (WS-1 Line 2o)
Totals Nefin calculates
- [AR-WS1-1] Gross receipts (WS-1 Line 1)Sum of the net amounts in [AR-WS1-3] + [AR-WS1-2c] + [AR-WS1-2h] + [AR-WS1-2j] + [AR-WS1-2o]
- [AR-StateTax] State tax 6.5% (ET-1 line unconfirmed, local excluded)Net amount × 6.5%, from [AR-WS1-3]
Use Tax Book
Arkansas - ET-1
- [AR-UseTax]Purchases subject to use tax
Totals Nefin calculates
- [AR-UseTaxDue] Use tax 6.5% (ET-1 line unconfirmed, local excluded)Net amount × 6.5%, from [AR-UseTax]
Frequently asked questions
What is the Arkansas sales tax rate?
The state rate is 6.5%. Counties, cities and districts may add local rates, which vary by address and are not part of these codes.
Which Arkansas sales tax codes does Nefin set up?
5 sales codes from the ET-1, for example AR-WS1-3 (AR taxable sales 6.5% (ET-1 Worksheet WS-1 Line 3)), AR-WS1-2c (AR sales for resale (WS-1 Line 2c)), AR-WS1-2h (AR sales to US government (WS-1 Line 2h)).
How does Nefin handle Arkansas use tax?
Book a purchase on which the vendor charged no Arkansas tax under AR-UseTax (AR purchases subject to use tax (ET-1 field; line no. unconfirmed)). The bill stays at the price you paid, and the use tax book works out the tax you owe at 6.5%.
Are these Arkansas codes official?
They are a starting point. Each code follows a line of the ET-1, but check them against your return before you file, and edit them in Settings, VAT rates.