The use tax in Rhode Island is a charge on tangible personal property and taxable services that are used, consumed, or kept there. Items that were bought outside of Rhode Island but would have been subject to sales tax if bought there are liable to use tax. For instance, you must pay use tax to the state of Rhode Island if you buy a computer from an internet shop who does not charge sales tax in that state.
To file sales tax in Rhode Island, you must first register with the Rhode Island Division of Taxation for a sales tax permit. You have two options for registering: online or on paper. Depending on the volume of sales you make, you must file sales tax reports on a monthly, quarterly, or annual basis once you obtain a sales tax permit. By the twentieth day of the month after the end of the reporting period, sales tax reports must be submitted and taxes must be paid.
– The majority of food products marketed for home consumption
– Prescription medications and medical supplies
– Clothes priced under $250
– Specific services, such as accounting and legal services
Providence, Rhode Island currently has a 7% sales tax rate. This price includes the 7% state sales tax rate alone; no additional municipal sales taxes are included. It’s crucial to examine the tax rate for the particular city or municipality where your business is located because Rhode Island’s sales tax rates might vary depending on geography.
As long as the article of apparel costs less than $250, Rhode Island does not impose a sales tax on it. All apparel, including shoes, hats, and accessories, are exempt from this rule. However, the full 7% sales tax rate will be charged on clothing items that cost more than $250.
In conclusion, use tax may apply to you if you reside in Rhode Island and buy tangible personal property or taxable services from another country. You must apply for a sales tax permit, file sales tax returns on a regular basis, and file sales tax returns in Rhode Island. While most items in Rhode Island are subject to sales tax, there are notable exceptions for some foods, medical devices, apparel, and services. There are no additional local sales taxes on top of Providence, Rhode Island’s 7% state sales tax.