Any business that sells goods or taxable services within the state of Maryland to customers located in Maryland is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in Maryland must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in Maryland State?
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 Maryland
- You have a distribution location such as a storage area or warehouse space
- Your business owns real or personal property
- You business enters Maryland to service or repair tangible personal property
- Your business has taxable services in the state of Maryland
What constitutes taxable services in Maryland State?
The majority of service businesses are not taxable in Maryland. The exceptions would be a 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 Maryland?
As a wholesale company conducting business in the state of Maryland, 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 Maryland?
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 Maryland are exempt and therefor are not required to have sales tax added
Are there any exemptions to taxable items sold?
Groceries, raw materials and machinery certain specific agricultural equipment, medical devices, nonperishable snack foods, and prescription medicines are tax exempt
Register for a Maryland sales/use tax number
Maryland state, county, city, & municipal tax rate table