R.I. Government Agencies | Privacy Policy |
IMPORTANT NOTICE
STREAMLINED SALES TAX
Rhode Island Enacts Streamlined Sales and Use Tax Agreement Legislation (44-18.1-1)
Effective January 1, 2007
Through the enactment of Title 44, Chapter 18.1-1 of the General laws, Rhode Island joined a national coalition of states in conforming the Rhode Island Sales and Use Tax Law to the provisions of the Streamlined Sales and Use Tax Agreement (SSUTA). The SSUTA was developed over the course of several years through the joint effort of over forty states participating in the Streamlined Sales and Use Tax Project. The underlying purpose of the Agreement is to simplify and modernize the administration of the sales and use tax laws of the member states in order to facilitate multi-state tax administration and compliance. The provisions of the new law are effective on January 1, 2007.
The Agreement provides for uniformity in the following areas: each state and their local jurisdiction’s tax bases; major tax base definitions; sourcing of taxable transactions. It also contains simplifications in the areas of: centralized vendor registration system; administration of exemptions; tax returns and remittances.
A major part of the simplification effort of the SSUTA is the requirement that each member state adopt the uniform product definitions developed by the Project, which will ease the compliance burden on multi-state vendors. Although each state must use the same definition for the defined terms, each state remains free to either impose tax or to provide an exemption for all products within a definition.
The following information summarizes the more significant changes made to the Rhode Island Sales and Use Tax Law in order to be in compliance with the provisions of the SSUTA.
DELIVERY CHARGES - Under RIGL 44-18-12(a) (iv), delivery charges are included in “sales price” and subject to tax if the property sold is subject to tax. If the property sold is exempt, delivery charges are not subject to tax. Delivery charges for “direct mail” are not included in “sales price” and are not subject to tax if separately stated on the invoice to the purchaser.
In keeping with the goal of relieving the burdens on sellers, another administrative reform is the standardization of exemption administration and the abandonment of the good faith requirement for sellers who accept exemption certificates. Absent fraud or collusion, sellers who accept a properly completed exemption certificate are relieved of liability for improperly claimed exemptions. The exemption certificate must contain specific identifying information about the purchaser and the type of exemption claimed, e.g. resale, manufacturing. The Division’s exemption forms currently in use remain acceptable evidence of a claim for exemption, unless businesses are notified otherwise.
The Streamlined Sales Tax Governing Board has approved a uniform Certificate of Exemption. This certificate may be obtained at: http://www.streamlinedsalestax.org/
Under the Streamlined legislation the following services are no longer considered telecommunications services and are not subject to sales and use tax.
If you do have a Rhode Island permit:
To register as a Streamlined retailer go to: http://streamlinedsalestax.org/Registration%20Info/Registration.html
By registering as a Streamlined retailer, you agree to collect and remit sales and use taxes for all taxable sales into member states.
If you are not registered with Rhode Island or any other state, should you? Take a look at the requirements below.
You should register as a Streamlined retailer if you are required.
Are you required to collect sales tax on sales made into any states?
If you answered “yes” to any of these questions, you have nexus with the state into which you are making sales.
Streamlined sales and use tax questions?
Call: 401-574-8962
