Rhode Island issued a reminder about the state’s sales and use tax notice and reporting requirements for retail sale facilitators and non-collecting retailers that were contained in legislation enacted in August 2017.
A retail sale facilitator that had $100,000 or more in gross revenue from the sale of taxable goods/services in 2017 delivered in Rhode Island or 200 or more transactions of taxable goods/services delivered in Rhode Island, must provide a list to the Rhode Island Division of Taxation of names and addresses of retailers for whom the retail sale facilitator collected Rhode Island sales tax. This must happen on or before January 16, 2018. Retail sale facilitators must also provide contact information of retailers for whom they did not collect Rhode Island sales tax but still utilized the retail sale facilitator’s services in 2017.
A non-collecting retailer, on or before January 31 of each year, must send a written notice to all Rhode Island customers who have cumulative annual taxable purchases from the non-collecting retailer totaling $100 or more for the prior calendar year. Thus, a non-collecting retailer must send notice to each in-state customer who met or surpassed the $100 cumulative annual purchase threshold for the 2017 calendar year by January 31, 2018. Purchases made during the entire 2017 calendar year must be present in the report.
By February 15 of each year, a non-collecting retailer must also provide the Rhode Island Division of Taxation with a certain annual attestation that its notice requirements were fulfilled (Advisory for Tax Professionals, ADV 2018-03, Rhode Island Division of Taxation, January 11, 2018).