If you are a business owner in the state of Massachusetts, and you make sales totalling $100,000 or more within a 12-month period, then you are required to have nexus with the state and must register for a Sales Tax Permit.
A Resale Certificate is a document that allows businesses to purchase goods and services tax-free from suppliers. This certificate also relieves the supplier of any sales tax liability on the sale of those goods or services.
There are two ways to share your reseller’s certificate with suppliers: by submitting an existing certificate to them, or by creating a new certificate on third-party platforms like Avalara, Tax exempt, etc.
The owners of the validated certificate lie with the supplier – it is their responsibility to ensure that all steps necessary are taken in order for the certificate to be valid.
Massachusetts – https://mtc.dor.state.ma.us/mtc/_/#2
Sales tax rate – 6.250%
Information required to register for a sales tax permit in the state of Massachusetts
1) Identifying information about your business
2) Type of business
3) Owners and officers
4) Description of business activities
There are certain purchases or rentals that can be made without paying sales tax. You can use nails, fabric and wood to make a chair, or items that you will rent out as tangible personal property, real property, or services.
A selling dealer can accept an Annual Resale Certificate that has only a single owner’s name on it and not a d/b/a; this type of certificate would be considered valid for resales in any type of transaction (i.e., store, e-commerce). The selling dealer can also continue to sell tax exempt products to this customer (for example, on charge account or cash-on delivery basis).
As long as you have all the proper information filled out, the initial copy of the certificate is sufficient- there’s no need to send in multiple copies. These are the things to remember if you want to obtain a certificate exempting resale tax.
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.
You have two options to share a reseller’s certification by the reseller. Either submit an existing reseller certificate or create a reseller certificate through third-party platforms like Avalara, Tax exempt, etc.
Massachusetts (, /-/), officially the Commonwealth of Massachusetts, is the most populous state in the New England region of the United States. It borders on the Atlantic Ocean and Gulf of Maine to the east, Connecticut and Rhode Island to the south, New Hampshire and Vermont to the north and New York to the west. The capital of Massachusetts is Boston, which is also the most populous city in New England. It is home to the Greater Boston metropolitan area, a region influential upon American history, academia, and industry. Originally dependent on agriculture, fishing and trade, Massachusetts was transformed into a manufacturing center during the Industrial Revolution. During the 20th century, Massachusetts’s economy shifted from manufacturing to services. Modern Massachusetts is a global leader in biotechnology, engineering, higher education, finance, and maritime trade.
Massachusetts was a site of early English colonization: the Plymouth Colony was founded in 1620 by the Pilgrims of the Mayflower, and in 1630 the Massachusetts Bay Colony, taking its name from the indigenous Massachusett people, established settlements in Boston and Salem. In 1692, the town of Salem and surrounding areas experienced one of America’s most infamous cases of mass hysteria, the Salem witch trials. In 1777, General Henry Knox founded the Springfield Armory, which, during the Industrial Revolution, catalyzed numerous important technological advances, including interchangeable parts. In 1786, Shays’ Rebellion, a populist revolt led by disaffected American Revolutionary War veterans, influenced the United States Constitutional Convention. In the 18th century, the Protestant First Great Awakening, which swept Britain and the Thirteen Colonies, originated from the pulpit of Northampton preacher Jonathan Edwards. In the late 18th century, Boston became known as the “Cradle of Liberty” for the agitation there that later led to the American Revolution.Source