You must fill out and submit Form T-205 in order to request a resale certificate in Rhode Island. The Rhode Island Division of Taxation’s website or any of their offices can be visited to get this form. Along with your business name, address, and federal tax ID number, you must also list the products you plan to resell.
After filling out the form, you have three options for submitting it to the Division of Taxation: online, via mail, or in person. If you complete all the conditions, the Division of Taxation will process your application and issue a resale certificate.
Resale certificates issued by the state of Rhode Island never expire. However, you will have to apply for a new certificate if your company’s status changes, such as a change in address or company name.
Certain goods are free from sales tax in Rhode Island. These include of items used in human nutrition, prescription medications, and medical equipment. Additionally, some services like those in the fields of education, law, and transportation are not subject to sales tax.
Out-of-state resale certificates are accepted in Rhode Island, however the seller will need a copy of the certificate. The business name, address, and federal tax ID number must all be included on the out-of-state certificate, just like they are on the Rhode Island certificate.
A seller’s permit may be necessary in Rhode Island if you are doing online sales of goods or services. If you meet the state’s economic connection requirements or have a physical presence in the state, such as an office or warehouse, you must obtain this permission. If you made more than $100,000 in sales or 200 transactions in Rhode Island over the preceding calendar year, you have met the economic nexus requirement.
Finally, getting a resale certificate in Rhode Island is a rather simple procedure. You can buy products tax-free for resale while also charging sales tax to your clients if you fill out Form T-205 and send it to the Division of Taxation. It’s crucial to be aware of Rhode Island’s sales tax exemptions, as well as the prerequisites for out-of-state certifications and seller’s licences.
Use tax in Rhode Island is levied when tangible personal property is used, stored, or consumed within the state but no sales tax has been paid. Usually, it is covered by those who made purchases from out-of-state merchants who did not already charge Rhode Island sales tax at the time of purchase. The use tax in Rhode Island is charged at the same 7% rate as the state’s current sales tax.
Depending on your salary, there are several income tax rates in Rhode Island. The tax rates currently vary from 3.75% to 5.99% as of 2021.