Rhode Island Rhode Island

Rhode Island

Standard rate:

7%

Who is obliged to register sales tax:

Remote sellers, referrers, and marketplace facilitators shall register in Rhode Island for a permit to make sales at retail and collect and remit sales tax on all taxable sales into the state.

Threshold:

$100,000 

Or

200 separate transactions

Merchant thresholds by state

Marketplace thresholds by state

The special rules are applicable for the SAAS business.

Software as Service Tax Thresholds by state

Online Marketplaces:

A marketplace facilitator must collect sales tax on all taxable sales made through the marketplace to purchasers in this state regardless of such conditions:

– the marketplace seller has/is required to have a permit to make sales at retail

– would have been required/or not to collect and remit sales tax had the sale not been made through the marketplace provider.

Registration procedure:

Registrations ways:

online via the website of the Division of Taxation or Streamlined Sales and Use Tax Governing Board.

Fill in and send the Business Application and Registration form. 

Sales tax payment and filing date:

If your sales and use tax liability for six consecutive months has averaged less than $200 per month, the Tax Administrator may issue you permit a quarterly filing.

In other cases, sales and use tax returns must be filed on a monthly basis on or before the twentieth day of the month next succeeding the month for which the return is required to be made.

Penalty and interest:

Penalty for the late payment of the tax of 10% of the tax due. Interest for the underpayment of tax calculated at the current rate is not less than 12%.