Rhode Island: Sales Tax Handbook
How to file your sales taxes in Rhode Island
Once your business has a Rhode Island sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the Rhode Island 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 Rhode Island
Once you have acquired the sales tax nexus and determined what you are selling as taxable, the next step is to determine how much you should collect. Given that it's a destination based sales tax state, you will be charged sales tax at the rate of your buyer's ship to location. Rhode Island does not have a local sales tax rate, and this means that you will be charged 7% sales tax to every buyer in Rhode Island. This also goes for sellers who are Rhode Island natives or those who live and operate their businesses elsewhere but have Rhode Island sales tax nexus. For those who operate a drinking/eating establishment then they need to collect a 1% tax on beverages and meals. Sales tax returns are always due 20th of every month following the reporting period. You'll also be allocated with a sales tax filing frequency every time you apply for a sales tax permit in Rhode Island.
Sales Tax Collection Discounts In Rhode Island
While many states allow merchants to keep a small percentage of the sales tax they collect as a collection discount, or compensation for the work put in collecting the tax on behalf of the state, Rhode Island does not currently allow this.
Your Rhode Island Sales Tax Filing Requirements
To file sales tax in Rhode Island, you must begin by reporting gross sales for the reporting period, and calculate the total amount of sales tax due from this period.
The state of Rhode Island provides all taxpayers with three choices for filing their taxes. One option is to file online by using the Rhode Island Devision of Taxation. This online system can also be utilized to remit the payment. The online system Autofile can also be utilized to both file and pay your business's taxes online. The final option is to file manually through the mail, by using the Rhode Island Streamlined sales Tax Return. IT must be noted, however, that taxpayers are required to pay online if the liability is greater than two hundred dollars.
Tax payers should be aware of several late penalties. The penalty for late payment is 10% of the tax that is due, and the late payment penalty is also 10%.
The state of Rhode Island requires that every seller who owns a sales tax permit to file a sales tax return on the required day, even if it is a "zeroes-out" tax return, and there is nothing to report.
Your Rhode Island Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 20th of the month following reporting period for monthly filers, for quarterly filers on the last day of the month following reporting period. For a list of this year's actual due dates, see our calendar of Rhode Island sales tax filing due dates.
Where To File Your Rhode Island Sales Tax Return:
Filing Your Rhode Island Sales Tax Returns Online
Rhode Island supports electronic filing of sales tax returns, which is often much faster than filing via mail.Electronic filing is required for taxpayers who are required to pay by EFT, and is optional for other taxpayers.
Rhode Island allows businesses to make sales tax payments electronically via the internet.Electronic payments are required only if the seller's monthly sales and use tax liability, on average, over the course of the prior calendar year, was a minimum of two hundred dollars.
You can process your required sales tax filings and payments online using the official RI Business Tax Filings website, which can be found here . You should have received credentials to access your RI Business Tax Filings account when you applied for your Rhode Island sales tax license.
Filing Your Rhode Island Sales Tax Returns Offline
While it is highly recommended that you file online using the RI Business Tax Filings website, it is possible to file your required sales tax reportings offline using Rhode Island filing frequency, which you can download and print here . Once you have completed your required reportings, you can mail it to the state at this address:Rhode Island Sales Tax Filing Address:
Please note that if you file your Rhode Island sales taxes by mail, it may take significantly longer to process your returns and payments.
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