If your business is operating in Massachusetts, you may need to register for sales tax with the state's Department of Revenue. Sales tax registration is required for businesses selling tangible personal property or taxable services in the state.
How to get a Massachusetts Sales Tax License
There are 2 sales tax setup tasks you may need to complete in Massachusetts to get your sales tax licence. You can follow the guide below to help you get registered directly with the Massachusetts agencies or use Mosey to do it.
Use Mosey to register for sales tax in Massachusetts.
Avoid the manual work and headache of registering with state agencies yourself. Automate it with Mosey and stay compliant.
Massachusetts Sales Tax Setup for LLC, LLP, Corporation
If you sell tangible personal property or taxable services in Massachusetts, you are required to register with the Department of Revenue to collect and pay sales tax. If you have at least $100,000 in sales of tangible personal property or taxable services delivered into Massachusetts in the current or previous calendar year, you have sales tax nexus as a remote seller. Note: SaaS is considered a taxable service in Massachusetts. Nonprofit organizations are subject to tax on the sale of tangible personal property or taxable services and must register for a Sales and Use tax account. 501(c)(3) nonprofits that have received a Certificate of Exemption (Form ST-2) may claim exemption from sales tax only on qualifying purchases that are used to conduct the charitable purposes by providing the seller with a completed Sales Tax Exempt Purchaser Certificate (Form ST-5).
Register for a Sales Tax Account
Log in to your MassTaxConnect account to register for a sales tax account by selecting "More.." and then select "Add a new account" under the "Access" section.
Massachusetts Corporate Excise and Sales Tax Exemption Setup for Corporation
Nonprofit organizations recognized as 501(c)(3) by the IRS must register for a MassTaxConnect account with the Massachusetts Department of Revenue in order to be recognized as exempt from Corporate Excise Taxes and from Sales and Use Taxes for qualifying purchases. Note: You will need to provide the IRS determination letter recognizing 501(c)(3) status. If you are approved for exemption, you are still subject to reporting and paying corporate excise tax on unrelated business income.
Create a MassTaxConnect Account
Navigate to the MassTaxConnect homepage. Under the Log in section, select "Sign Up" and then "Register a Business." During the registration process you will have the ability to provide your 501(c)(3) IRS determination letter and various organizations information, which will allow the Massachusetts Department of Revenue to recognize your organization as exempt.
Massachusetts Sales Tax Filing Requirements & Deadlines
There are 2 sales tax filing requirements & deadlines you may need to complete in Massachusetts. You can follow the guide below or use Mosey to do it.
Massachusetts Sales Tax Return for LLC, LLP, Corporation
If you are registered to collect sales tax in Massachusetts, you are required to file and remit sales tax regularly. Filing frequency is dependent on the annual sales tax liability: if your annual sales tax liability is $100 or less, you can file annually. If your annual liability is $101 - $1,200, you should file quarterly; if your annual liability is at least $1,200, you should file monthly. Note: Businesses that had at least $150,000 in sales tax liability in the previous calendar year are required to make monthly advance payments. Advance payments are due on the 25th of each month, and should cover sales tax collected through the 21st of the current month or at least 80% of the sales tax liability from the previous month.
File Sales Tax Return Online
Log in to your MassTaxConnect Account to file your file and remit sales tax.
