UAB is responsible for collecting and remitting sales tax on the sale of tangible personal property in accordance with specific provisions of the Alabama Sales and Use Tax Rules (Rule 810-6-2-.88.03).
Sales tax must be collected at the point of sale and the appropriate liability entry included on the deposit form using object code 2103010. Failure to collect the sales tax from the buyer may result in the UAB department being required to cover the liability.
The method for calculating sales tax is dependent on the way a good is advertised which is covered in the Alabama Sales and Use Tax Rules (Rule 810-6-4.20).
- Cost Plus Sales Tax – Sales price stated without reference to sales tax must collect sales tax in addition to the sales price. The customer shall be furnished with a receipt showing sales tax separately stated if requested.
- Cost Including Sales Tax – Sales tax included in the purchase price of the tangible personal property sold must be disclosed.
The UAB Tax Services department is responsible for the remittance of sales tax to the appropriate taxing authorities. Current sales tax rates are as follows:
- State of Alabama Department of Revenue - 4%
- City of Birmingham - 4%
- Jefferson County - 1% EST and 1% ST