How to Remit Sales Tax to the Commonwealth of Massachusetts
The Commonwealth of Massachusetts requires that all vendors collect and remit sales tax on the rental or sale of goods and services classified as taxable. The sales tax is normally collected by the vendor at the time of the sale. The vendor must register with the Department of Revenue in order to collect the tax, then file a sales tax report and remit the tax to the Commonwealth. Depending on how much sales tax is collected, businesses are required to file annual, quarterly, or monthly sales tax returns and to remit the taxes collected with the return.
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Instructions
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Information for all Returns
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Download the proper form from the Massachusetts Department of Revenue's website. If you collect no more than $100 in sales tax annually, locate Form ST-9A for goods or the STS-A for services and file yearly. If you collect at least $101 but no more than $1,200, you will need the Form ST-9Q for goods or the STS-Q for services and will report quarterly. If you collect more than $1,201 in sales tax annually, you will need the Form ST-9 for goods or the STS-M for services and will file and remit monthly.
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Sign and date the return after it is completed.
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Mail the return and a check for payment to the Massachusetts Department of Revenue at the address shown on the return.
Returns for the Sale of Goods
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Complete the form. Enter the gross sales for the period covered on Line 1. Enter the total sales exempt from sales tax on Line 2. Record sales of fuel, tools or materials on Line 2A and sales of machinery or replacement parts on Line 2B. Add Lines 2, 2A, and 2B and enter the total on Line 3. Subtract Line 3 from Line 1 and enter the result on Line 4; enter "Zero" if the result is a negative number.
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Record purchases on which you must pay Use Tax on Line 5. Add Lines 4 and 5 and record the total on Line 6.
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Multiply the amount on Line 6 by the current sales tax rate, which is 6.25 percent as of June, 2010. Enter the result on Line 7.
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Claim any credit due for prepaid sales tax on tobacco products only if you are a registered tobacco retailer by entering the amount you prepaid on Line 8. Subtract Line 8 from line 7 and enter the result on Line 9.
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Enter any amounts owed for penalties and interest, if applicable, on Line 10. Add Lines 9 and 10 and enter the total on Line 11.
Returns for Sales Tax Collected on Services
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Complete the form. Enter your gross sales for the period covered on Line 1. Enter the total sales for the covered period that were exempt from sales tax on Line 2. Subtract Line 2 from Line 1 and enter the result on Line 3.
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If you have Use Tax Purchases to report, enter this amount on Line 4. Add Lines 3 and 4 and enter the total on Line 5.
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Multiply the amount on Line 5 by the current tax rate, which is 6.25 percent as of June, 2010, and enter the result on Line 6.
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Enter any amounts owed for penalties or interest on Lines 7 and 8 respectively. Add Lines 6, 7 and 8 and enter the total on Line 9.
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Tips & Warnings
Sign up at the DOR WebFile for Business site for online filing.
References
- Photo Credit Massachusetts state contour against blurred USA flag image by Stasys Eidiejus from Fotolia.com
