Rhode Island Offers Wayfair Guidance

Rhode Island answers frequently asked sales tax collection questions after last month’s decision in South Dakota v. Wayfair, Inc., U.S. Sct. Docket No. 17-494, June 21, 2018. Legislation enacted in 2017 requires non-collecting retailers to register and collect sales tax if they have $100,000 in sales or 200 or more transactions in Rhode Island. Non-collecting retailers can also give notice to buyers about their sales tax obligation instead of collecting.

Registration Options

Non-collecting retailers can register and begin to collect Rhode Island sales taxes by:

– completing theStreamlined Sales and Use Tax registration form;

– completing Rhode Island’s registration form; or

– using a certified service provider.

Effects of Wayfair on Rhode Island Sales

Non-collecting retailers registered in Rhode Island prior to Wayfair are not affected and should continue to collect and remit. Non-collecting retailers could be liable for tax on sales made before Wayfair. The Division of Taxation recommends reviewing applicable laws. Purchasers may see an increase in the number of retailers collecting tax. However, purchasers are still responsible for use tax if a retailer does not collect.

Publication 2018-06, Rhode Island Division of Taxation, July 6, 2018, ¶200-959

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All stories by: CCHTaxGroup