September 8, 2022

Sales and Use Tax

Returns are due on the 20th day of the month after the filing period. File by including the taxable items on your regular sales tax return, or you can file using the eForm ST-7. All individuals, as well as businesses operating in the state, must pay use tax when the sales tax was not collected by the seller on otherwise taxable products brought or shipped into Tennessee. The use tax applies to all items otherwise subject to sales tax except for services and amusements. The sales tax is Tennessee’s principal source of state tax revenue accounting for approximately 60% of all tax collections. The sales tax is comprised of two parts, a state portion and a local portion.

  • While apparel designed solely for athletic or protective use is taxable, items that are also suitable for everyday use are exempt.
  • You should also check with your local Board of Health to see if you also need a local tobacco sales permit.
  • Use myconneCT to file taxes, make payments, view filing history, and communicate with the agency simply and more efficiently on virtually any mobile device, including laptops, tablets, and smartphones, 24 hours a day, 7 days a week.
  • Sales of aircraft, watercraft, and motor vehicles are taxed at different rates than those listed above.
  • Before sharing sensitive or personal information, make sure you’re on an official state website.

Visit Out of State Contractors and Subcontractors for more information. Willful tax evasion is a felony punishable by a fine up to $100,000 for individuals or $500,000 for corporations and/or imprisonment for up to 5 years. If you use electronic data processing systems, you must also keep certain electronic records. For more detailed information, see DOR Regulation 830 CMR 62C.25.1(3), (4) and (5).

Electronic File and Pay (eFile and ePay) Requirement

For example, sales of used appliances by a homeowner or sales at infrequent yard sales. Please note that generally, casual sales of cars, boats or trailers are taxable except for certain family transactions. Taxpayers who do not comply with the requirements to file returns, make payments or electronically submit data to us will be penalized up to $100 for each return, payment or data transfer they submitted incorrectly. See Penalty for Failure to File, Report or Pay in the Prescribed Format for more information. For motor vehicle and trailer sales, however, the buyer pays the sales tax directly to Massachusetts. Visit Motor Vehicle Sales and Use Tax for more detailed information.

What is US sales and use tax?

There is no national sales tax in the US and therefore no standard rate. Sales or use tax rates vary by state, ranging from 2.9 to 7.25 percent at the state level. In addition to the state rate, local governments in 35 states impose an additional sales or use tax ranging from 1 to 5 percent.

Postal Service or date-stamped by a private delivery service at least 2 days before the due date. For example, if you buy furniture for your Massachusetts business or home from an out-of-state firm, you don’t pay sales tax, but you still have to pay the use tax. The use tax applies because the furniture wasn’t subject to a sales tax in the other state and because it’s for use in Massachusetts.

Florida Certificate of Forwarding Agent Address

A business with nexus in Massachusetts is required to collect tax when it ships goods to a consumer in Massachusetts on behalf of a retailer that is not required to collect the tax because it does not have nexus with Massachusetts. While the business with nexus in Massachusetts may not accept a resale certificate from its customer that doesn’t have nexus in Massachusetts, it may accept from its customer a notarized statement on the customer’s letterhead instead. For a more detailed explanation of the rules regarding drop shipment transactions, please see TIR 04-26, Letter Ruling 85-60, and Directive 86-21. Sales of local residential telephone services billed on a recurring basis or for message unit charges (when provided to a residential purchaser), up to a total of $30 per month. This includes service provided to an individual for personal use at their residential address (including an individual dwelling unit such as an apartment).

Records must be kept for at least 3 years from the date the return was filed or the date it was required to be filed, whichever is later. Returns may also be audited for up to 6 years if taxpayers understate the tax that should have been reported on the return by more than 25%. If you failed to file a return Sales And Use Tax or filed a false or fraudulent return, we may request records at any time. Out-of-state retailers that aren’t required by law to register as Massachusetts vendors may register voluntarily to collect use tax. Beginning July 1, 2023, the general sales tax rate will increase to 6.3% in Pittsylvania County.

Software & Digital Goods

Generally, the tax on the sale or use of telecommunications services is a tax on transmitting messages or information by various electronic means, but not on the sale or use of information itself. Several areas have an additional regional or local tax as outlined below. In all of Virginia, food for home consumption (e.g. grocery items) and certain essential personal hygiene items are taxed at a reduced rate of 1%. § (4), the Department of Revenue Services reminds retailers that Connecticut law prohibits a retailer from advertising that the sales tax, or any portion of the sales tax, on merchandise will be paid or absorbed by the retailer. Connecticut law also prohibits a retailer from advertising that the sales tax will not be added to the sales price of merchandise or that, if added, the sales tax or any portion of the sales tax will be refunded. Any retailer violating these laws will be fined $500 for each offense.

Please click on the links to the left for more information about tax rates, registration and filing. Some taxpayers are required to file amended returns and applications for abatement electronically. Trustee and business tax taxpayers may file returns and make payments electronically through MassTaxConnect.

Businesses must complete and file Form OS‑114 to report all sales activity in Connecticut, even if no sales were made or no tax is due. Both taxable and nontaxable sales must be reported in accordance with your monthly, quarterly, or annual filing frequency assigned by DRS. All building contractors, including subcontractors, must obtain a Sales and Use Tax Permit from DRS prior to providing any services, even if the services provided are not taxable or if the contract is with a tax-exempt entity.

Sales And Use Tax

Contractors in this situation are considered to be acting as retailers of tangible personal property, and they must collect sales tax from their clients on these items. MassTaxConnect users can use the “amend” feature in MassTaxConnect to change previously filed withholding, sales and use tax (including sales tax on meals) and room occupancy tax returns. Business taxpayers can also use MassTaxConnect to dispute an audit finding or a penalty by choosing “File a Dispute” under “I Want To” in their account for each tax type.

Current Sales & Use Tax Forms

If a due date falls on a Saturday, Sunday or legal holiday, the next working day is the due date. Although sales to exempt organizations are exempt from tax, retail sales made by exempt organizations are subject to sales tax, unless an exemption applies. Infrequent and nonrecurring transactions made by people or businesses that don’t regularly make such sales.

Tax-exempt organizations that sell tangible personal property or telecommunications services in the regular course of business are also considered vendors and required to collect sales/use tax. In many cases, in order to sell, lease, or rent tangible personal property without charging sales tax, a seller must obtain a certificate of exemption from the buyer. The sales-for-resale exemption prevents tax from being charged multiple times on the same item. The sales tax should be applied on the final retail sale to the consumer. The exemption prevents the tax being applied on goods as they are distributed before being sold at retail. The consumer’s use tax applies to tangible items used, consumed, or stored in Virginia when the Virginia sales or use tax was not paid at the time of purchase.

File and Pay

You should also check with your local Board of Health to see if you also need a local tobacco sales permit. If you fail to file or pay the full amount of sales tax due by the due date, a penalty of 6% per month is added to the tax owed. The minimum penalty applies to late returns even if there is no tax owed. Starting July 1, 2019, you generally do not need to collect sales tax on your sales through the platform. You may still need to register to collect sales tax on your own sales outside of the platform. Learn more about registration and collection requirements as a marketplace seller.

Sales And Use Tax