Remote sellers , marketplace facilitators, and referrers

 

In response to the U.S. Supreme Court's decision in South Dakota v. Wayfair, Inc., et al., on June 21, 2018, the State of Rhode Island has enacted legislation that requires remote sellers, marketplace facilitators, and referrers to register with the Rhode Island Division of Taxation and collect and remit Rhode Island's 7% sales and use tax effective July 1, 2019.

The requirement applies to remote sellers with no physical presence in Rhode Island who sell products/services into Rhode Island, marketplace facilitators with no physical presence in Rhode Island who facilitate the sale of products/services into Rhode Island, and referrers with no physical presence in Rhode Island who refer the sale of products/services into Rhode Island, if:

  1. The remote seller, marketplace facilitator, or referrer in calendar year 2018 had gross revenue from sales into Rhode Island of $100,000 or more, or
  2. The remote seller, marketplace facilitator, or referrer in calendar year 2018 had sales into Rhode Island in 200 or more separate transactions.

You may register with the Division of Taxation online or by completing and submitting the Business Application and Registration (BAR) form. Another option is to register online through the Streamlined Sales and Use Tax Governing Board website. (Through the Streamlined option, you may register with any or all of the Streamlined member states, including Rhode Island.)

The following table includes information that may help you comply with the new law. But first, please keep in mind the following two reminders:

› A quick and easy way for you to register for a Rhode Island sales and use tax account in one or more of the Streamlined member states all at once is through the Streamlined Sales Tax Registration System (SSTRS). For more information, click here. (Once you register in this way, you will automatically be registered in Rhode Island and can begin collecting and remitting tax; you will not receive a separate notification of your Rhode Island registration.)

› A convenient way to collect and remit Rhode Island sales and use tax is through a Certified Service Provider (CSP) under the auspices of the Streamlined Sales and Use Tax Agreement (SSUTA). For more information, click here.

Document Title Description View
ADV 2019-11 Summary of new law, including some FAQs View
Senate legislation Senate Bill 251A as enacted (same as House bill below) View
House legislation House Bill 5278A as enacted (same as Senate bill above) View
BAR Paper form for registering with Rhode Island Division of Taxation View

Please note: Some out-of-state entities still have certain requirements under Rhode Island's law involving non-collecting retailers, referrers, and retail sales facilitators. Please see information for those entities below.

Non-collecting retailers, referrers, and retail sales facilitators

Rhode Island Law Enacted 2017: Under legislation enacted on August 3, 2017, you may have certain registration and/or notice and reporting requirements involving Rhode Island sales and use tax. Which of the requirements apply to you depends upon whether you qualify as a “non-collecting retailer”, a “retail sale facilitator”, or a “referrer” (the terms are defined in the new law). For example:

Non-collecting retailer: If you qualify as a “non-collecting retailer” (as defined in statute), you must – beginning August 17, 2017 – register with the Division of Taxation for a permit to make sales at retail and collect and remit sales and use tax on all taxable sales into Rhode Island, or implement certain notice requirements.

Referrer: If you are a "referrer", you must -- beginning August 17, 2017 -- notify retailers that their sales may be subject to Rhode Island sales and use tax.

Retail sale facilitator: If you are a retail sale facilitator, you have certain filing requirements beginning January 15, 2018.

To comply with these filing requirements, Retail Sales Facilitators should proceed to the Annual Reporting Page.

The following table includes information that may help you comply with the new law. But first, please keep in mind the following two points:

› A convenient way to collect and remit Rhode Island sales and use tax is through a Certified Service Provider (CSP) under the auspices of the Streamlined Sales and Use Tax Agreement (SSUTA). For more information, click here.

› A quick and easy way for you to register for a sales and use tax account in all Streamlined member states, including Rhode Island, is through the Streamlined Sales Tax Registration System (SSTRS). For more information, click here. (Once you register in this way, you will automatically be registered in Rhode Island and can begin collecting and remitting tax; you will not receive a separate notification of your Rhode Island registration.)

Document Title Description View
Legislation Section of legislation (now law) establishing the "Non-Collecting Retailers, Referrers, and Retail Sale Facilitators Act." Includes definitions and other information. View
Registration form - highlighted Registration form with highlights showing the sections of the form that you must complete. (Under the new law, you may have to register with the Division for a permit to make sales at retail and collect and remit sales and use tax on all taxable sales into Rhode Island.) Note: This document remains under construction. View
Registration form - blank Blank registration form. (Under the new law, you may have to register with the Division for a permit to make sales at retail and collect and remit sales and use tax on all taxable sales into Rhode Island. This is the form you'll use to register. Please remember to complete the last page.) View
Non-collecting retailer -- general notice. Explains how the new law may affect you. View
Non-collecting retailer -- website notice Sales and use tax notice to be posted on website of non-collecting retailer. View
Non-collecting retailer -- checkout notice Sales and use tax notice to be sent by non-collecting retailer to customer at time of purchase. View
Non-collecting retailer -- 48-hour notice Sales and use tax notice to be sent by non-collecting retailer to customer within 48 hours of purchase. View
Non-collecting retailer -- Jan. 31 notice Annual sales and use tax notice to be sent by non-collecting retailer to customer by January 31. View
Non-collecting retailer -- attestation Annual attestation showing that non-collecting retailer has complied with notice requirements. Must be filed by February 15. View
Retail sale facilitator -- notice Explains how the new law may affect you if you are a retail sale facilitator. View
Retail sale facilitator -- reporting form Use to provide the names and addresses of your retailers. Download
Referrer -- notice Explains how the new law may affect you if you are a referrer. View
Summary of Legislative Changes Summary of key tax provisions contained in fiscal 2018 budget bill -- including those involving non-collecting retailers, retail sale facilitators, and referrers. View

Note: The information on this page is not a substitute for the law itself. Refer to the law for specific details on any of its provisions.