New Rhode Island law impacts sales tax reporting requirements

SANSIVERI KIMBALL AND CO. LLP and the R.I. Division of Taxation have published some guidance on how new state law is impacting sales tax reporting requirements.
SANSIVERI KIMBALL AND CO. LLP and the R.I. Division of Taxation have published some guidance on how new state law is impacting sales tax reporting requirements.

PROVIDENCE – Sansiveri Kimball and Co. LLP and the R.I. Division of Taxation has published some guidance on how new state law is impacting sales tax reporting requirements.

“Under new Rhode Island legislation, there are certain requirements of [taxpayers] with regard to collecting and reporting sales tax,” according to an information brief released by the Providence-based firm last week.

The new law impacts non-collection retailers, referrers and retail-sale facilitators that had one over $100,000 of taxable sales delivered into Rhode Island or over 200 of such sales transactions in the state during the preceding calendar year.

Starting next month, non-collecting retailers will need to register with the state “to collect and remit sales and use tax on all taxable sales to Rhode Island, or to provide certain notices to customers that inform them of their sales tax responsibility regarding that purchase,” according to the brief.

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Retail facilitators subsequently must provide Taxation with an annual list of names and addresses of retailers for whom they collected state sales tax and a second list of retailers from whom they did not.

Referrers, which include advertisers for retail sales in Rhode Island, must notify retailers that their sales may be subject to Rhode Island sales and use tax.

A full list of legislative changes and more details on sales tax reporting requirements can be found on the state website.

Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or you can follow him on Twitter @Eli_Sherman.