Maryland Sales Tax License Registration

If your business is operating in Maryland, you may be required to register for sales tax with the state comptroller's office. Sales tax registration is necessary for collecting and remitting sales tax on taxable goods and services sold within the state.

How to get a Maryland Sales Tax License

There are 2 sales tax setup tasks you may need to complete in Maryland to get your sales tax licence. You can follow the guide below to help you get registered directly with the Maryland agencies or use Mosey to do it.

Maryland Sales Tax Setup for LLC, LLP, Corporation

If you sell tangible personal property or taxable services in Maryland, you are required to register for a sales tax license with the Comptroller of Maryland to collect and pay sales tax. If in the current or previous calendar year you have made at least 200 transactions or $100,000 in gross revenue from the sale of tangible personal property or taxable services delivered into Maryland, you are considered an "out-of-state vendor" with sales tax nexus. SaaS software is considered a taxable service in Maryland. Note: Sales by out-of-state 501(c)(3) or 501(c)(19) organizations are exempt from Sales and Use Taxes if they are: (1) Located in Maryland or an adjacent jurisdiction, and (2) Satisfy one of the following conditions: (a) Provides services in Maryland on a regular basis, (b) The adjacent jurisdiction does not impose a sales or use tax on a sale to a nonprofit organization made to carry on its work, or (c) The adjacent jurisdiction has a reciprocal exemption from sales and use tax for sales to nonprofits located in adjacent jurisdictions similar to Maryland's exemption. Any organization making ordinarily taxable sales of tangible personal property, including meals, must obtain a sales and use tax license and collect and remit the tax.

1. File a Combined Registration Application

   File a Combined Registration Application to apply for a sales tax account with the Comptroller of Maryland.

Maryland Purchase Sales Tax Exemption Setup for Corporation

Maryland issues Sales and Use Tax Exemption Certificates for certain qualifying organizations, that allow them to make specific purchases without paying sales and use taxes. The following tax-exempt organizations may qualify: (a) Nonprofit charitable, educational and religious organizations, (b) Volunteer fire companies and rescue squads, (c) Nonprofit cemetery companies, (d) Qualifying veterans organizations, (e) Government agencies, or (f) Credit unions. Qualifying organizations should file a Sales and Use Tax Exemption Certification Application (SUTEC) with the Comptroller of Maryland with attached copies of the organization's IRS determination letter, articles of incorporation, and bylaws. Note: Qualifying organizations must be located in Maryland or in an adjacent jurisdiction of Delaware, Pennsylvania, Virginia, West Virginia, or Washington, D.C. in order to be eligible for exemption. Sales and use tax exemptions must be renewed every five years.

1. File Exemption Certification Application

   Mail your completed Sales and Use Tax Exemption Certification Application with the required supporting documents directly to the Comptroller of Maryland, Central Registration Section.

Maryland Sales Tax Filing Requirements & Deadlines

There are 2 sales tax filing requirements & deadlines you may need to complete in Maryland. You can follow the guide below or use Mosey to do it.

Maryland Sales Tax Return for LLC, LLP, Corporation

If you have a sales tax account in Maryland, you are required to file your sales tax returns (Form 202) online through the Comptroller of Maryland's bFile system. Returns are due quarterly for new account holders. Depending on your actual sales tax liability, over time your filing schedule may be changed to monthly, bi-annual or annual. The Comptroller’s office will notice you in advance of any change in your filing frequency.

1. File Sales Tax Return Online

   Log in to your Maryland Tax Connect account to file your sales tax return.