How To Register For Sales Tax In Maine

🦞🌲🦞 Maine, known equally the Pinetree land, is the only monosyllabic land in our spousal relationship and too the only state to border but i other state. Far out! Additionally, we get 90% of our sweetness, sugariness lobster supply from Maine (this will merely seem insignificant if you've never had a lobster roll). Many small businesses thrive out of this lilliputian state that packs a large dial! If you're one of the many small-scale business owners proud to call Maine home, you'll need to comply with Maine's sales tax laws to keep the party going. No worries! We take assembled this all-in-one guide for sales taxation and so that you can meet the sales tax compliance requirements for a small-scale business in Maine.

After reading this guide, you lot will have learned:

How to be prepared for your call with the Maine Revenue Services.
How to contact the Maine Revenue Services.
When to accuse sales tax in Maine.
What appurtenances, products, and services are taxable in Maine.
When y'all establish a sales tax nexus with the state of Maine, and the nuances of various thresholds.
How to annals for a sales taxation license in Maine.
How to collect sales tax in Maine.
How to file and pay sales taxation in Maine.

If, afterwards reading, you still take any questions to help y'all make up one's mind your tax sales obligations in Maine and how to fulfill them, we are here for your minor business organisation bookkeeping needs!

Maine Sales Tax Contacts

✅ Do you need to get in touch with the Maine Revenue Services?

✅ Are you uncertain about whether to visit, call them, or contact them through their website?

✅ Practice you wonder what information you should have gear up earlier yous contact them?

If you answered "Aye" to any of these questions, please read onward, every bit we have merely the data you need! :)

The Maine Revenue Services is reachable by phone at (207) 624-9693 .

You lot can also shoot a bulletin to them past email, or you may visit their simply physical location in Augusta. If you are hoping for the fastest response, our suggestion is that you call rather than send a message or visit in person.

When you do call the Maine Acquirement Services, you lot will desire to have some information on mitt. It will save time to take the following data hands accessible earlier you call:

Taxpayer Name
EIN
Sales & Utilize Tax ID Number

If you are calling on behalf of an individual or a business concern, or having a tertiary political party telephone call on your behalf, you must have a Maine Power of Attorney (form 2848-ME, PDF) signed before you call or else yous will exist wasting your time; they can only assist if y'all have a completed class.

If you have any more questions, please feel free to contact us so nosotros tin assist you with your sales tax needs.

Maine Sales Tax Registration

Are y'all a new business concern selling tangible property in Maine? If aye, you are going to want to annals your business with the Maine Revenue Services so that yous can pay your sales tax on time.

You need not fret as this is a relatively elementary procedure and i for which you lot're about to be fully prepared . We are going to outline the steps beneath and so you lot are totally ready to register for your sales tax license.

Here we become! Recollect...

Preparation is key.

Permit's get started!

How exercise I register to collect sales revenue enhancement in Maine?

You tin can apply or annals for a Maine sales tax permit by visiting the Maine Revenue Services and post-obit the instructions provided.

Maine also has an old schoolhouse newspaper based grade (PDF) you tin print and mail in, but this is going to be a slower setup and with greater possibility for errors. We don't recommend it, but wanted to make the option available in case it suits the needs of someone out there.

What information do I need to register for a Maine sales tax allow?

Slap-up question!

Before you sign up for Maine sales tax permit y'all'll want the following information on hand:

Concern name
Business organization entity type
Description of business organization activities
Engagement business activities began or will begin
Business organization address and mailing address
Business organisation contact information
Associated business entities
NAICS code that best matches the business concern
Federal Employer Identification Number (FEIN)

Don't forget! Preparation is fundamental. When yous have all this information ready, you lot tin get online and register for your permit at the Maine Concern Tax Registration Application website.

How much does it cost to register for a Maine sales tax let?

Y'all're gonna dear this: Maine charges exactly zero dollars and zero cents for a business to register to pay sales tax :) No price amend than gratuitous, we say!

Do I need a Federal Tax ID Number or EIN to register for a Maine sales tax permit?

Quite right, aye! You will demand one, but if you don't already have one and demand to become a new EIN, it'due south a painless process. Yous can register for a Federal EIN right here :).

Which agencies in Maine do I need to additionally annals with?

You may demand to apply to some of the following agencies:

Maine Department of Labor
Maine Bureau of Business Management
Maine Engineering science Institute

You'll want to requite this some thought and practice a piddling research or investigating; every business concern is unique and, as such, there are different rules, regulations, and laws that may utilize.

We suggest contacting the Maine Revenue Services to verify which additional regime agencies y'all may be required to annals with.

*****

Huzzah!!!

You are now prepared to register for your Maine sales tax allow in Maine.

Let's summarize what we accept covered:

Have all the required information easily attainable before registering online.
Acquire a tax ID or EIN earlier registering for a Maine sales tax permit.
Register online at the Maine Revenue Services website.
Look into what other agencies you may accept to additionally register with.

Registering for your Maine sales tax allow will be stress free as long as you are prepared. We recommend organizing all the essential information in a folder, preferably using a organization like Box.com or Dropbox (something we're happy to handle for our customers).

Maine Sales Tax FAQ

Maine Sales Revenue enhancement FAQ

By at present, you may have already contacted the Maine Revenue Services and applied for a Maine sales tax permit.

Once you have a license to collect and remit sales taxes in Maine, you lot volition probably exist asking yourself ii questions:

When do I charge a sales tax in Maine?

What appurtenances and services are subject to sales taxes in Maine?

We are going to go over some common questions that our clients have asked. We believe these questions will help y'all capeesh the nuances of taxable goods and then you lot tin can be confident in fulfilling your tax obligations.

Let'south showtime with the start question…

What goods and services are considered taxable in Maine?

The following items are all taxable in the state of Maine:

Sales of tangible appurtenances at retail.
Repairs or alterations of tangible personal belongings.
Property rentals, leases, or licenses [e.thou. commercial, mini-warehouse]
Selling service warranty contracts.
Short-term rentals for living accommodations (east.g. motel/hotel, embankment houses, condos, timeshares, vacation homes, or RV homes).
Charges for admission to any place of amusement, sport, or recreation.
Manufacturing or producing goods for retail sales.
Operating vending machines or amusement rides.
Services are more often than not exempted

The bottom line is …

Your business organisation must pay taxes on sales of any non-exempt goods, and some taxable services.

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Allow'southward at present review some of our clients' often asked questions:

Is Maine an Origin or Destination sales tax State?

What creates a sales tax nexus in Maine?

What is the economic threshold in Maine?

Does Amazon take fulfillment centers in Maine?

Does Maine accept a Click-Through Nexus?

To best sympathize your tax obligations, new businesses need to consider how they are doing business and the type of relationships they accept with buyers and any third parties to their transactions.

Permit's discuss some questions that will help you lot empathise the nature of your small business and the subsequent tax implications.

Is Maine an origin or destination-based sales tax state?

Maine is a destination-based sales tax state, which simply means y'all charge sales taxation based on the location of the purchaser rather than that of the seller. Maine keeps it fairly simple compared to other states by not permitting cities or localities to bump the rate, which ways only one rate state-wide.

Protip: Charge the customer tax based on their location.

What creates a revenue enhancement nexus with the country of Maine?

Having nexus, also known as "sufficient business presence," with Maine means your business has established a taxing connection with a state. When this happens, you are required to collect and remit sales tax in Maine considering you created a sales tax Nexus.

Even if your business maintains its chief headquarters in another country, you may nonetheless have to charge and pay sales revenue enhancement to the Maine Acquirement Services even if y'all never step pes in Maine.

And so, how practise you lot create sales tax nexus in Maine?

Sales Tax Nexus in Maine

A business establishes a nexus in Maine by:

having a business organisation location in Maine;
having property stored in Maine;
employing any person in Maine;
contracting with a salesperson or other agent in Maine;
leasing equipment used in Maine;
performing services in Maine;
licensing the use of intangible property in Maine, or transporting property in Maine using the taxpayer'due south vehicles.

Permit's talk a bit more specifically about where your appurtenances are stored such as in the instance of an Amazon warehouse.

Does Amazon accept fulfillment centers in Maine?

No, Maine has no distribution centers at this fourth dimension.

This information is relevant for our customers who sell products on Amazon or are recognized equally Amazon FBA (Fulfillment by Amazon) sellers. When Amazon stores products in one of its fulfillment centers in any state including, it triggers a sales tax requirement.

Does Maine have economical nexus?

Yes! Maine now has an economic nexus police force. What does this mean? Equally of July 1st, 2018 remote sellers are liable to pay sales tax beyond a sure threshold. This means fifty-fifty businesses without a physical presence or traditional nexus tin be required to register for, collect, and pay sales taxes.

The threshold for registering is having a cumulative gross acquirement of over $100,000 in sales to Maine purchasers or 200 separate transactions.

For more data encounter the Maine's remote sellers page.

Does Maine have click-through nexus?

Yeah! Maine has click-through nexus for remote sellers. This means if your business is involved in chapter marketing sales to Maine purchasers, you may be liable to pay sales tax even if you aren't located in the country of Maine.

Is Maine a streamlined sales tax state?

No, Maine is not at this time a fellow member of the SSP. However at that place has been legislative progress towards that end so it may exist joining soon!

More finer manage your tax needs past keeping this guide handy.

Yous and your business concern can exist better equipped to avoid situations similar paying fines, paying back taxes that you did know you had to pay in the starting time identify, or facing an audit past the tax authorities in Maine.

Collecting Sales Tax in Maine

By at present you lot know if you are a business organisation that has established a nexus with Maine. And so you have an agreement about whether, or when, yous are required to collect sales tax. Knowing this is simply half the battle! At present, we are going to help you with the adjacent one-half of the battle: how to navigate the process of collecting taxes.

Let'due south review some common questions our clients have asked regarding their Maine Sales Tax obligations.

How practice I collect Maine Sales Tax?
Who is eligible for Maine Sales Tax exemptions?
What should I do if my client is exempt from sales tax in Maine?
What happens if I lose a Maine nontaxable transaction certificate?

Afterward reading this, you will exist meliorate equipped to determine when --and when non-- to collect sales taxation in Maine.

How do I collect Maine sales tax?

Considering Maine is a destination-based sales taxation state with no localities, your business concern charges a single flat rate throughout the state. You may incorporate or office out the taxation into the final price at your discretion, but you must mail service notice either on the sales sideslip or on your premise that sales tax is incorporated.

What are the current Maine sales tax rates?

Maine's state-broad sales tax rate is v.5% for tangible goods and 6% for their Service Provider Tax at the fourth dimension of this article's writing. Notwithstanding, since sales revenue enhancement rates may change, we shall refer you to check out the Maine Acquirement Services taxation rate lookup page. Whatsoever change will be reflected on that folio.

It e'er helps to exist accurate and upward to date with this blazon of data! :)

What is exempt from Maine sales tax?

Here is a sample listing of exemptions:

Purchases for resale
Everyday clothing items
Medical supplies
Groceries

Maine has far besides many exempt items to listing here, but they go into greater detail on page 7 of this PDF.

Who are eligible for Maine sales tax exemptions?

At this point, y'all should know what products are exempt from sales revenue enhancement in Maine. You lot also want to know who may be exempt.

Under Maine law, the blazon of buyer or the style the goods will be used can qualify tin buyer for a sales tax exemption. A good case of this is a merchant purchasing goods for resale, aka a wholesaler.

Other common examples of an exempt buyer may include:

Government agencies
Non-profit organizations
Religious groups
Out-of-state buyers (should their business not have nexus in their abode state).

Note that a not-profit or contractor status doesn't necessarily immediately confer tax exempt status. Maine keeps a listing of taxation-exempt organizations..

What should I exercise if my customer is exempt from sales tax in Maine?

Purchasers who are taxation exempt must have completed an exemption certificate and must nowadays their completed exemption certificate at the time of buy. It is and so incumbent upon the seller to concord on to this exemption document. Failure to do so may get out you unable to justify tax exempt sales.

Maine provides a website to determine whether an exemption document is valid. Note that determining the validity via the website doesn't reduce the requirement to hold on to the certificate for accounting purposes.

What happens if I lose a Maine Sales Tax exemption certificate?

Hmm... Obviously this issue is all-time to be avoided! Imagine finding out you lot'll be audited and discovering you cannot produce an exemption document for a buyer! That nightmare scenario would mean y'all could be held liable to pay all taxes on behalf of the buyer. This is a bad scene and tin exist avoided by taking proper intendance with your paperwork… which happens to exist one of our specialties! :)

Does Maine have a sales tax holiday?

Negative, the tax human being never sleeps in Maine.

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We have now covered who you lot need to collect sales taxes from, how to make up one's mind whether appurtenances for sale are deemed taxable, what appurtenances and services fall under taxation exemptions, who is eligible for revenue enhancement exemption certificates, and, finally, the process of collecting sales revenue enhancement in Maine state.

Now that we're this far downwardly the rabbit hole there'south but one thing nosotros need to acquire about next… how to pay the piper!

Filing and Paying Sales Taxation in Maine

It is time to talk nigh filing and paying your sales taxes in Maine. In this department, We are going to cover the following frequently asked questions from our clients:

When is Maine Sales Tax due?
What are the Maine Sales Revenue enhancement thresholds?
What if a Maine Sales Tax filing date falls on a weekend or holiday?
How practice I file a Maine Sales Tax Render?
How exercise I correct a Maine Sales Revenue enhancement return?
What happens if I don't collect sales tax?
What happens if I file or pay my sales tax render late?
Do I demand to file a return if I don't collect whatever sales tax in Maine?
If I shut my business, do I need to file a final sales taxation return?
Does the Maine Acquirement Services offering a discount for filing on time?

By the time you finish reading this, y'all will experience confident enough to file and pay your Maine Sales Revenue enhancement.

When is Maine sales tax due?

Maine sales tax payments are due based on the filing interval. Filing intervals are based on the company's tax liability [detailed ahead, be patient! :p]

Filing Interval	Due day
Annually	No later than Jan 15th
Semi-Annually	No later than the 15th of Jan and July
Quarterly	No subsequently than the 15th of the month following the quarter
Monthly	No later than the 15th solar day of the calendar month post-obit the month being reported

What are the Maine sales tax filing interval thresholds?

The thresholds for filing intervals are based on the expected or bodily tax liability owed:

Tax Amount Owed monthly*	Filing interval
Less than $50	Annually
Less than $100	Semi-Annually
Between than $100 and $599	Quarterly
More $600 a month	Monthly

*predictable if new concern, actual if existing company

Not sure how to make up one's mind your tax filing frequency?

You can review your eCommerce or Signal-of-Sale Software to see the volume of sales you have generated.

Don't worry though! The land will allow y'all know when your due dates modify. :)

Keep an centre out for notices in your mail from the Country of Maine and so that you don't miss any shift in deadlines.

What if a Maine sales tax filing date falls on a weekend or holiday?

The deadline is moved to the next business day, typically the Monday post-obit the weekend or the day after the holiday. Where possible, we always suggest filing well before the holiday, of course ;).

How do I file a Maine sales tax return?

Paper: Complete form ST-vii (PDF) and mail to the address on the form.

Electronic: File form ST-seven online and submit payment via EFT.

How do I correct a Maine sales tax render?

Correct the return via the Maine SalesTax site or by filling out the same form form ST-vii (PDF) and make sure to select Amended return. In either case, merely fill up out the amended render equally though it was the only ane you're submitting.

What happens if I don't collect sales revenue enhancement?

If yous were required to collect sales taxes and failed to exercise so for whatever reason, that's a big no-no! Ultimately the business organization volition be held liable for the due tax. Always be sure to collect sales tax at the bespeak of auction. Attempting to collect after the fact will be time consuming and nearly likely unsuccessful.

Protip: You are still responsible for remitting sales taxes even if you failed to collect them.

What happens if I file or pay my sales tax return tardily?

Maine Revenue Services has 2 different types penalty rates that can be applied to taxes that are due. Whichever is the highest penalty is the one which volition apply, of grade:

Failure to file a render on time -- 10% or $25
Failure to pay the due tax on fourth dimension -- 1% to a max of 25% of revenue enhancement owed

Do I need to file a return if I don't collect whatever sales taxation in Maine?

Yes, Maine requires businesses file a "Zilch-Tax" render even when they accept no sales during a taxing period.

If I close my business, do I demand to file a final sales tax return?

Yes, Maine requires businesses to file a "Final sales tax" return when endmost their doors.

Does the Maine Acquirement Services offer a discount for filing on fourth dimension?

No! For dessert, yous go more broccoli 🥦, and be grateful! ;p

*****

Now that nosotros covered all our bases for filing and paying sales taxes in the country of Maine, you should feel more at ease nearly the process.

Some things to call back:

Due dates are important. If anything, file and pay your taxes early.
In that location are iii payment plans for filing and paying your sales taxes depending on how much you collect in sales tax on average in a calendar month.
You tin can file and pay your taxes electronically or by post
If you demand to amend a return, you may do so electronically or by paper.
If you don't collect sales tax and you lot were supposed to, yous (non the buyer) is liable to pay the sales revenue enhancement to the country of Maine.
You will accept to pay late fees if yous fail to file your tax return on time and/or if yous neglect to make your taxation payment on fourth dimension.
Even if you collect no sales taxation, yous still need to file a return.
You demand to file a "Final sales tax report" when y'all close your business organisation.

At present, you are ready to file and pay your sales tax in Maine. If you accept any more questions, experience free to contact us.

Click here if you think sales tax is boring. Book a meeting.

Please note: This blog is for advisory purposes just and the information is accurate as of 7/xv/2019. If you want legal communication on sales tax law for your business, please contact a Sales Tax professional. Keep in heed that sales tax regulations and laws are discipline to modify at any fourth dimension. While we strive to keep our blog current, this weblog possibly may be out of appointment by the time you review it.