Does Maine Charge Sales Tax On Services

Maine Sales Revenue enhancement

Maine Sales Tax At a Glance

Maine Sales Tax State rate: 5.5%
Maximum combined charge per unit: v.5%
Sourcing: Destination
Taxation Holidays: None
Governing Body: Maine Department of Revenue

The Country of Maine's sales tax laws are more often than not in line with those of other states with a flat state sales tax applying to most purchased goods, a slightly college sales tax on select goods such every bit prepared foods, and several exemptions. To make up one's mind the rate you must collect, and to what information technology applies, there are several factors to evaluate.

Maine Sales Tax Rates

Maine'southward sales tax rate is v.l%. This tax is collected at the state level with no local taxes applying in Maine's counties or municipalities. There are several additional factors to consider, however, depending on the appurtenances being purchased and the method by which they are purchased.

The base sales tax rate applies to most tangible appurtenances. There is a separate sales tax of 7% on many prepared nutrient items, every bit well equally several exemptions for things like medical devices, pharmaceutical drugs, and grocery staples. The State provides a comprehensive listing of all items exempt from sales tax on their Acquirement Services website.

Maine Sales Tax Nexus

Before collecting sales tax for sales in or to residents of Maine, you need to determine if yous have sales tax nexus in the land. Nexus applies to those who, under Maine regulations, are considered to have concern operations in the land. If yous are non based in Maine or if you sell products online, this is an important step.

The following plant nexus in the state:

Delivery vehicles owned by the company operating in the Land of Maine
An employee who operates from the State of Maine.
Independent contractors or representatives in the state.
Role infinite, belongings, or warehouse space located in the state.

Internet sales into the land for a company that has Nexus here will be subject to sales revenue enhancement drove. For those selling through Amazon, in that location are no warehouses currently located in Maine and therefore no Nexus for those sales notwithstanding established.

Goods Eligible for Maine Sales Taxation

There are several goods and services that are considered exempt from sales taxation in the State of Maine. These include:

Services – Most services in Maine are not taxed. There are, however, exceptions for service providers such as cable and satellite tv set service, fabrication services, rental or video media and equipment, telecommunications, community support services, day habilitation services, personal support and residential grooming services.
Grocery Staples, Medical Supplies, and Prescription Drugs – Non-prepared foods, prescription medications, and most major medical devices and recurring medications are exempt from sales taxation as well. This includes 'grocery staples', though recent changes to the constabulary have added a sales taxation to grocery items not considered staples, such as prepared foods and meals, soft drinks, vitamins, candy, gum, and other like items, to which a 7% taxation.

Because of the recent changes made to the Maine sales tax code and the classification of different particular types and how tax is collected on their auction, it is recommended you reference the Maine Revenue Services website and review Code 1752 to determine what products yous sell are exempt, subject to the standard 5.5% sales tax rate and bailiwick to the 7% prepared foods tax rate.

Registration

If you sell tangible personal holding and have nexus in the Country of Maine, y'all must annals for a sales tax license in the country. To do and so, y'all'll need all your personal and business organisation identification information, business organisation entity blazon and tax ID number, and a detailed clarification of the goods your company sells.

Y'all can register for sales tax collection on the Maine Revenue Services website using their online services portal. Registration for Sales & Use Taxation, Use Taxation, Income Taxation withholding, and Service Provider tax are all handled through the same folio and the procedure takes about 45 minutes to complete, and then exist sure to take all your information ready and time set up aside to complete the application.

The application is free, though there may exist other fees assessed depending on what types of registration you lot are completing at the aforementioned time. You lot will exist approved rather apace and receive your sales tax number inside 1-2 business days, and the paper allow within 20 business organization days for brandish in your identify of business organization. Renewals are not required either, though any changes to your business name or location should be filed with the state.

Filing

Y'all will pay Maine sales and use taxation by:

For Those in State – Maine is a destination-based state with no local taxes, so drove of sales tax is relatively piece of cake compared to another states. If you lot have nexus in the state, y'all volition collect the five.5% sales tax on all relevant transactions.
Aircraft – Shipping and handling are typically non taxable in Maine, if it is stated separately on your bill to the client. If the price of shipping is included in the cost of the goods sold, however, it must be considered role of that taxable transaction and sales tax is nerveless.
Filing Your Render – Y'all can file your sales tax render with the Land of Maine on the Maine Acquirement Services website directly here.

Your initial filing frequency will depend on your initial reported sales and will be updated each year after a look back of activities on your accounts. The post-obit is used to determine your filing frequency:

Almanac – $50 or less per year
Semi-Almanac – Less than $100 per month
Quarterly – Betwixt $100-$599 per calendar month
Monthly – $600 or more than per month

Most businesses will fall into the monthly filing frequency default, and those who have a smaller tax volume may qualify for the less frequent filings.

Deadlines

Quarterly: For those with revenue enhancement liability between $100 and $599 per month, the post-obit filing deadlines will utilize.

Period	Due Date
January – March (Q1)	April fifteen
April – June (Q2)	July xv
July – September (Q3)	Oct 15
October – Dec (Q4)	January fifteen

Monthly: For those with tax liability of more than $600 per month, the following filing deadlines will apply.

Flow	Due Appointment
Jan	February 15
February	March 15
March	April 15
April	May 15
May	June 15
June	July 15
July	August 15
August	September 15
September	Oct fifteen
Oct	Nov xv
November	December 15
December	Jan 15

Annual: For those businesses with liability less than $50 per year, yous volition file annually by January 16.

Penalties and Interest for Late Payments

All businesses with tax collected must file on time based on their frequency assigned by the state. Those who practice not file on time will be subject to a late filing penalty of x% of tax due or $25 (whichever is greater). Those who submit their payment tardily volition owe a penalty of ane% of revenue enhancement due per calendar month with a maximum of 25% due. There are more extreme penalties for those who are sufficiently delinquent or who have been determined to commit fraud in their filings. There is no zero filing in Maine, so those who have collected nil sales tax for a period are not required to file for it, despite lack of action.

Maine Tax Resources

Maine Section of Revenue Website
My Tax Maine Portal for Online Payments

Maine Sales Tax Software

Maine's sales tax offers a simple destination-based collection system for those who have nexus in the state, but with variable rates on different appurtenances, changing exemption rules, and variable filing deadlines depending on how much you collect, information technology'south important to have a system in place that tin can help you file on time and accurately each time. Our TaxTools service can help with detailed data review tools, sorting tools to ensure the proper payments are being made based on the goods sold, and integration with your existing eCommerce platform all from within the same interface. It's a lot easier to manage your Maine Sales Tax collection through a unmarried portal, particularly if selling in multiple states. Learn more than about TaxTools or sign upward for a costless trial today to evaluate the software for your business organization.

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