Maine: Sales Tax Handbook
How to file your sales taxes in Maine
Once your business has a Maine sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the Maine government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In Maine
Collecting sales tax in the state of Maine is very simple. Maine has one statewide tax rate of 5.5%. This means that regaurdless of your business's location, if you have sales nexus in the state of Maine, you are required to charge your customers located in Maine the standard 5.5%.
However, it must be noted that certain items can be taxed slightly differently. For instance, in Maine all prepared food is taxed at the rate of 8%.
Sales Tax Collection Discounts In Maine
Maine allows merchants to keep a small percentage of the sales tax they collect as a collection discount, which serves as compensation for the work required to comply with the Maine sales tax regulations
While the state has no collection discount, it must be noted that retailers may keep any excess sales tax collections under the state's bracket system, or "breakage", as compensation for the collection of the tax.
Your Maine Sales Tax Filing Requirements
To file sales tax in Maine, you must begin by reporting gross sales for the reporting period, and calculate the total amount of sales tax due from this period.
In the state of Maine, all taxpayers file their sales tax online. This can be accomplished by using the the Maine Department of Revenue, which uses the Maine I-File. It is also possible for sales tax payment to be remitted through this online system.
Tax payers in Maine should be aware of several late penalties the state applies. The penalty for late filing is either 10%, or twenty-five dollars, whichever comes out to be the larger amount. The late payment penalty is 1% of the tax due for the month, or fraction of a month missed. The maximum compounded late payment penalty is 25%.
The state of Maine requires that a seller who owns a sales tax permit files sales tax return on the required day, so long as the tax return would have been "zeroed-out", and there is nothing to report.
Your Maine Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 15th of the month following reporting period. For a list of this year's actual due dates, see our calendar of Maine sales tax filing due dates.
Where To File Your Maine Sales Tax Return:
Filing Your Maine Sales Tax Returns Online
Maine supports electronic filing of sales tax returns, which is often much faster than filing via mail.
Maine allows businesses to make sales tax payments electronically via the internet.Electronic payments are required for any taxpayer with a combined tax liability greater than one hundred thousand dollars for all of the taxes accumulated during the prior calendar year.
You can process your required sales tax filings and payments online using the official Maine Sales, Use and Service Provider Tax Filing System website, which can be found here . You should have received credentials to access your Maine Sales, Use and Service Provider Tax Filing System account when you applied for your Maine sales tax license.
Filing Your Maine Sales Tax Returns Offline
While it is highly recommended that you file online using the Maine Sales, Use and Service Provider Tax Filing System website, it is possible to file your required sales tax reportings offline using Maine Form 102013, which you can download and print here . Once you have completed your required reportings, you can mail it to the state at this address:Maine Sales Tax Filing Address: Maine Revenue Services
PO Box 1065
Augusta, ME 04332-1065
Please note that if you file your Maine sales taxes by mail, it may take significantly longer to process your returns and payments.
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