Starting a business in Rhode Island is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales and Use Tax Permit, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in Rhode Island.
This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.
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Who Needs a Seller’s Permit in Rhode Island?
A business must register for a sales tax permit in Rhode Island if:- you meet physical or economic nexus within the state
- you are selling taxable products or providing taxable services to customers in Rhode Island and
- you sell, rent, or lease tangible personal property at retail that must collect sales tax
How to Register for a Seller’s Permit in Rhode Island?
When applying for a Seller’s Permit in Rhode Island, you can use the online application process on the Rhode Island Division of Taxation website to complete your sales tax registration.1. Where can you Apply for a Seller’s Permit in Rhode Island?
The first step to register for a sales tax permit online is to go to the State of Rhode Island Division of Taxation Department of Revenue website and click on “Business Registration” found in the “Popular Services” section on the top right section. You will be redirected to a landing page welcoming you to the RI Division of Taxation Combined Online Registration Service. Scroll down below and click on “Begin.” When you reach a login page, click on “Sign Up.” Before registering for a seller’s permit in Rhode Island, you must create an online user profile and password by filling out the necessary details, such as your name, email address, phone number, RI Employee Account Number, Federal ID Number, or Social Security Number. Next, follow the prompts to complete the registration process. Provide information like your name, daytime phone number, and an active email address. Since you are applying as an out-of-state/remote seller with no physical presence via online application, make sure to choose “No” for the following questions:- Do you have employees working in Rhode Island?
- Do you lease employees in Rhode Island?
- Do you have an actual Rhode Island Location that is not a P.O. Box?
2. What Information Do You Need to Get a Seller’s Permit in Rhode Island?
To successfully acquire a seller’s permit in Rhode Island, it’s important to prepare and provide specific information and documents. The following is a list of the necessary necessary information and documents required to register a sales tax permit in Rhode Island:- Business Identification Information: Legal Business Name, Physical Address, Mailing Address
- Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
- Federal Employer Identification Number (EIN or FEIN)
- Name, Address, and SSN of Owners, Partners, or Officers
- Business Activity Details: Date & State of Incorporation, Start Date with the State of Rhode Island (Nexus Start Date)
- NAICS Code
3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in Rhode Island?
Registering for a sales tax permit in Rhode Island costs $10. The state charges a non-refundable registration fee. The Rhode Island sales tax permit must be renewed annually for $10. If you apply through the Rhode Island website, you will pay the fee with a credit card. If you apply via paper application, you must attach a $10 check payable to the state of Rhode Island. Kindly note that sales tax permits expire every 30th of June, and renewal applications are due annually by the 1st of February.4. What are Other Ways to Register for a Seller’s Permit in Rhode Island?
- Use TaxHero. Registering for a seller’s permit, mainly when it involves multiple permits, can be a tedious and time-consuming task requiring much effort. Let the experts at TaxHero save you from this hassle, and let us handle the registration process in all states where you have nexus as part of our all-inclusive sales tax service.
- Paper Application: You must fill out the Business Application and Registration form (BAR) and mail it to the Division of Taxation located at One Capitol Hill, Providence, RI 02908, along with the $10 fee. You can also register by emailing the completed BAR form to tax.excise@tax.ri.gov or tax.registration@tax.ri.gov
What’s Next?
After you submit your online form, you will see a confirmation page confirming that your request for a sales tax permit has been submitted to the Rhode Island Division of Taxation for review and processing. You should receive a packet at your mailing address within 2 to 3 weeks. It contains the following:- Filing instructions
- PIN for Tax Portal
- Permits
- Withholding summary