Maryland Offers Increased Vendor Credits for March, April, and May Returns Filed by July 15, 2021

Maryland is currently offering a vendor credit of up to $3,000 on sales tax returns for the months of March, April, and May 2021. The credits were included in Senate Bill 496, Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families Act, also known as the RELIEF Act, which the state passed in February. The credit is equal to the sales tax collected during each of the three months, up to a maximum of $3,000 per month, for a total credit of $9,000.

Businesses can take the credit on returns for any of the three months if they meet the following requirements:

  • Sales tax due on the monthly return does not exceed $6,000
  • The business does not take the standard vendor’s discount on the return
  • The return is timely filed through the state’s bFile system
  • The sales tax used to calculate the credit was not collected by a marketplace facilitator.

For quarterly filers, the same requirements apply to the quarterly returns for Q1 and Q2, for a total possible credit of $6,000.

The Comptroller of Maryland has extended the due dates for March, April, and May 2021 until July 15, 2021, allowing businesses that have not yet filed these returns to remain eligible. Vendors that have already filed their returns for the months in question and have taken the vendor’s discount can email [email protected] to request that their return be amended. (Tax Alert: Maryland RELIEF Act 04-20-21, Maryland Comptroller, April 20, 2021; RELIEF Act Sales and Use Tax Credits FAQs)

Posted on June 14, 2021