Filing your Alabama sales tax return is simple with the state’s online system. You can file and pay directly through the My Alabama Taxes (MAT), the official portal of the Alabama Department of Revenue (ADOR), as long as your business is registered to collect and remit sales tax.
This guide walks you through the step-by-step process of filing online so you can submit returns on time, avoid penalties, and stay compliant with Alabama’s sales tax rules.
What You Need Before Filing
Before logging into MAT, gather the following information to ensure a smooth filing process:- Alabama Sales Tax Account Number – Issued when you register for your Sales Tax License. This number identifies your business in the MAT system.
- MAT Username and Password – Created during registration. If you don’t have login credentials, you can set them up through the MAT portal.
- Sales Records – Collect gross sales figures for the reporting period, including taxable sales, exempt sales, and any deductions. Be prepared to include withdrawals (items purchased tax-free for resale but later used internally), which are taxable under Alabama law.
- Local Sales Data – Alabama administers over 200 local tax jurisdictions. Use ADOR’s Local Sales Tax Guide to confirm which city and county sales taxes apply to your business.
- Bank Account Information – For electronic payments, have your bank routing and account numbers ready. Businesses making payments of $750 or more must pay electronically (ADOR EFT requirements).
- Filing Frequency Schedule – Most businesses file monthly, with returns and payments due on or before the 20th of the month for the previous month’s sales. However, based on your annual liability, you may request to file on a different schedule. You may qualify for:
- Quarterly filing if your total state sales tax liability was less than $2,400 for the preceding calendar year.
- Semi-annual filing if your total state sales tax liability was less than $1,200 for the preceding calendar year.
- Annual filing if your total state sales tax liability was less than $600 for the preceding calendar year.
Step-by-Step: How to File Alabama Sales Tax Online
Once you have your records and login credentials ready, follow these steps to file your Alabama sales tax return through the My Alabama Taxes (MAT) portal.
Step 1. Go to the My Alabama Taxes website. Step 2. Enter your Account Credentials: Log in using your username and password. Check your shared email/phone number and enter the OTP when applicable. Step 3. Prepare your Ecommerce Sales Tax Data (e.g., Taxes Report from Shopify). Step 4. Under Simplified Sellers Use, click File or View Returns on your account dashboard. Step 5. Select the correct filing period for the return you’re submitting. Step 6. Review the return details and click Next to proceed. Step 7. Input your Total Sales for the period based on your Shopify report, then click Next. Step 8. Enter any additional sales information if applicable, then click Next. Step 9. Review all fields for accuracy. Once confirmed, click Next again. Step 10. Input your Client’s Bank Details for payment, then click Submit. Step 11. Save the confirmation in your preferred location for recordkeeping purposes. Keeping online records using Google Drive is a common option. Helpful Tip: You can always click “Save and Submit Later” to avoid losing progress during connection issues or system downtime.Due Dates
Alabama sales tax returns and payments are generally due on the 20th of the month following the reporting period. If the 20th falls on a weekend or state holiday, the deadline moves to the next business day. Your filing frequency depends on your tax liability from the previous calendar year:- Monthly: Default for most businesses.
- Quarterly: If your annual liability is under $2,400.
- Semi-Annual: If your annual liability is under $1,200 or you only make sales during two 30-day periods.
- Annual: If your annual liability is under $600 or you only make sales during one 30-day period.
| FREQUENCY | REQUIREMENT | REPORTING PERIOD | DUE DATE |
| Monthly | Default for most businesses | Each month | 20th of the following month (e.g., January return due February 20) |
| Quarterly | Annual liability under $2,400 |
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| Semi-Annual | Annual liability under $1,200 OR sales limited to two 30-day periods in the year |
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| Anually | Annual liability under $600 OR sales limited to one 30-day period in the year | January – December | January 20 |
Timely Filing Discount
Alabama offers a discount to encourage businesses to file and pay sales tax on time:- Discount Amount: 5% of the first $100 of tax due, plus 2% of any remaining tax.
- Maximum Credit: $400 per return (minimum $5).
- How It’s Applied: The discount is automatically calculated in the MAT Portal when you file and pay by the due date.
- Local Sales Taxes: The discount also applies to most local taxes administered by the state. However, non-state-administered local taxes (filed separately) may have different rules (Local Tax Info).
Filing Amended Returns
If you discover an error in a previously filed Alabama sales tax return for a state-administered period, you have two options: amend it electronically via MAT or submit a paper amendment.Option 1: Amend Online via MAT (Recommended)
- Log in to My Alabama Taxes (MAT).
- Navigate to your Sales and Use Tax account and select the relevant filing period.
- Click “File or view a return”, then select “Amend Return”. The return will reopen for editing.
- Update the necessary information (e.g., gross sales, deductions, local jurisdictions).
- If additional tax is owed, the amount due will automatically reflect your changes. Remember to subtract prior payments from what’s shown.
- If you overpaid, submitting the amended return will post a credit to your account in a few days.
- Finish by submitting your changes. MAT will reconcile once processed.
Option 2: Paper Amendments (for local or non-MAT returns)
- If you need to amend a state-administered local return, use a copy of your original. Mark it “AMENDED”, include the original confirmation number, and mail it to the state.
- For non-state-administered local returns, contact the specific locality for instructions.
Filing Zero Returns in Alabama
Even if your business had no taxable sales during the reporting period, you are still required to file a return. Alabama law requires every registered seller to submit a report, even if the amount due is $0.- Log in to MAT with your account.
- Select the appropriate filing period and click “File a Return.”
- Enter “0” for gross sales and deductions.
- Submit the return and save your confirmation for your records.
Other Filing Methods in Alabama
While electronic filing is the required method for most sales and use tax returns, Alabama offers additional options and nuances for specific situations:- ONE SPOT – Alabama’s Optional Network Election for Single Point Online Transactions (ONE SPOT) allows businesses to file and pay both state-administered and many local taxes in one place through My Alabama Taxes (MAT), simplifying the process and reducing administrative burden.
- ACH Credit Payments – The Alabama Department of Revenue (ADOR) requires the ACH Debit method for electronic payments unless a taxpayer has been specifically approved to use ACH Credit. If you use ACH Credit, you must ensure the payment is initiated in time to be settled by the due date. Some localities do not accept ACH Credit payments through ONE SPOT, and in such cases, you will need to pay them directly.
- E-file Mandate – Electronic filing and payment of sales and use tax returns through My Alabama Taxes (MAT) is mandatory for business taxpayers, as per Rule 810-1-6-.12 of the Alabama Administrative Code. The paperless system has been the standard for years, and failure to comply can result in penalties.
- File with TaxHero – Let TaxHero’s team of experts handle your Alabama sales tax filings for you. We’ll prepare, file, and manage your returns accurately and on time so you can focus on running your business.