Sales tax-free products and services:
Machinery and equipment used in production activities, tangible personal property for consumption in production activities, tangible personal property for resale or incorporation as a material or part of other tangible personal.
Servicing, maintaining, or repairing tangible personal property other than production machinery or equipment, or providing for the health and comfort of employees are not production activities.
Who is obliged to register sales tax:
When you sell in Louisiana and qualify as a dealer under the definition and meet the threshold, you need to be registered to collect and pay sales tax in Maryland.
Starting October 1, 2018, out-of-state dealers with sufficient physical or economic presence for establishing nexus in Maryland must register to collect sales tax. This includes online sellers or remote sellers that have over $100,000 in sales annually in the state or more than 200 or more separate transactions in the state in the previous or current calendar year.
The special rules are applicable for the SAAS business.
If all of your sales in Maryland are through a marketplace platform, and you are not a marketplace facilitator, you can not register for paying Maryland sales tax. Your marketplace facilitator pays the sales tax itself.
If you are selling through your own marketplace, then you will need to register for paying sales tax if you meet the threshold.
You can be registered online on the Maryland taxes website.
Sales tax payment and filing date:
Depending on your tax liability, determine your filing frequency – either annual, semiannual, monthly, or quarterly:
Annual – At the state’s discretion
Semiannual – At the state’s discretion
Quarterly – $0 to $700.00
Monthly – $700.01 and up
Returns are always due to the 20th day of the month following the reporting period. If the filing due date falls on a weekend or holiday, sales tax is due the next day.
Penalty and interest:
- Late Filing – 10% and interest at no less than 1% per month
1.2% of the first $6,000 collected and 0.9% for the amount above $6,000 if you file in a timely manner. There is a maximum of $500 for each return.