When it comes to sales tax, there are a few things that businesses need to be aware of. For starters, in order for a business to not charge sales tax on goods or services, they must have a valid reseller certificate. This document allows the supplier or provider of the good or service not to charge any sales tax and instead, pass this liability onto the re-seller.
There are two ways in which a reseller can share their certificate with a business: submitting an existing certificate or creating one on third-party platforms such as Avalara or Tax exempt. It’s important for businesses owners to keep in mind that the validity of the certificate falls on the supplier; so, all necessary steps must be taken to ensure its accuracy.
Additionally, businesses should be mindful of state-specific nexus laws. In Maine, for example, the threshold for nexus is $100,000 in sales.
Sales tax rate – 5.500%
Information required to register for a sales tax permit in the state of Maine
1) Personal identification info (SSN, address, etc.)
2) Business identification info (EIN, address, etc.)
3) Business entity type
Description of what your business sells
You may have to report any use taxes if you resell an item you purchased. Use taxes are similar to sales taxes but apply only when merchandise is brought into your state for use there–not when it’s sold.
The purchaser does not need to circle one of the bullet points on the form in order for it to be valid- simply filling out and signing the form is enough. The address on the certificate doesn’t have to match the location address of your company. It just needs to include your business name and be up-to-date.
An Annual Resale Certificate can be accepted by a selling dealer if it has only one owner and no d/b/a. This type of certificate is valid for any type of transaction (store, e-commerce). In addition, the selling dealer can continue to sell tax-exempt products (for example, on a charge account or cash on delivery basis) to this customer.
If a reseller certificate is submitted by the business, supplier, or the provider of the service or goods, is authorized not the charge any sales tax, and the liability of sales tax, then lies with the re-seller, based on the value of the final sales. Ex. $100 worth of products are sold by business A. The reseller certificate (2A) was submitted by reseller b (2A). No sales tax is charged on this transaction. However, if the reseller sells the product for $200 or more, the $200 sales tax will be added to the final sales.
The owners of validated the certificate lie with the supplier and all necessary steps must be undertaken to ensure that the certificate is valid
Maine is a state in the New England region of the United States, bordered by New Hampshire to the west; the Gulf of Maine to the southeast; and the Canadian provinces of New Brunswick and Quebec to the northeast and northwest, respectively. Maine is the 12th-smallest by area, the 9th-least populous, the 13th-least densely populated, and the most rural of the 50 U.S. states. It is also the northeasternmost among the contiguous United States, the northernmost state east of the Great Lakes, the only state whose name consists of a single syllable, and the only state to border exactly one other US state. The most populous city in Maine is Portland, while its capital is Augusta.
Maine has traditionally been known for its jagged, rocky Atlantic Ocean and bayshore coastlines; smoothly contoured mountains; heavily forested interior; picturesque waterways; and its wild lowbush blueberries and seafood cuisine, especially lobster and clams. In more recent years coastal and Down East Maine, especially in the vicinity of Portland, have emerged as an important center for the creative economy, which is also bringing gentrification.
For thousands of years after the glaciers retreated during the last ice age, indigenous peoples were the only inhabitants of the territory that is now Maine. At the time of European arrival, several Algonquian-speaking peoples inhabited the area. The first European settlement in the area was by the French in 1604 on Saint Croix Island, founded by Pierre Dugua, Sieur de Mons. The first English settlement was the short-lived Popham Colony, established by the Plymouth Company in 1607. A number of English settlements were established along the coast of Maine in the 1620s, although the rugged climate and conflict with the local indigenous people caused many to fail.Source