Do you need to get a Sales Tax certificate in the state of Maine?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in Maine
- You have a distribution location such as a storage area or warehouse space
- You have employees physically present in Maine (including independent contractors, sales persons, representatives, or agents)
- Your business has economic presence (businesses who make over $100,000 in sales annually or more than 200 transactions)
- Your business has taxable services in the state of Maine
What constitutes taxable services in the state of Maine?
The majority of service businesses are not taxable in Maine. The exceptions would be service business that manufactures or fabricates a product.
Why do you need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Maine?
As a wholesale company conducting business in the state of Maine, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you need to collect sales tax on shipping and handling of merchandise?
Shipping and handling charges are generally not taxable if you separate it from the purchase price of the item being sold on the invoice.
Is there sales tax on drop shipments in the state of Maine?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in Maine are required to have sales tax added
Are there any exemptions to taxable items sold?
Certain specific Medical equipment, raw materials and machinery, perishable staple foods ( Milk, Bread, eggs, etc. ) and certain prescription medicines are tax exempt