Sales, Use, and Service Provider Tax FAQ

Registering for Sales, Use, or Service Provider Tax Accounts

  1. Do I need to register for a sales tax account?
  2. Do I need a Federal Employer Identification Number (EIN) to register for a tax number? How do I apply for an EIN?
  3. How do I register to get a tax number, also known as a registration number, sales tax account, retailer number, or a reseller certificate?
  4. What’s a NAICS code?  How do I figure out what mine is?

Retailer and Resale Certificates

  1. What is the difference between a retailer and resale certificate?
  2. Why didn’t I receive a Resale Certificate?
  3. How do I know if my customers’ resale certificate is current?

Filing Returns and Making a Payment

  1. How frequently do I need to file my returns?
  2. When do I file my return to report sales?
  3. Why has my filing frequency changed?
  4. How do I file electronically?
  5. How do I find my registration/account number?
  6. How do I find my business code?
  7. How do I find my password?
  8. How do I pay my taxes?
  9. I’m trying to pay a bill I received for interest and penalties.  How do I pay that?
  10. I’m trying to make a payment and get an error message of “Return not filed for period”.

Updating My Account Information

  1. Can I change my business and/or banking information (mailing address, email address etc.) online?
  2. How do I amend my return?

Service Provider Tax

  1. What is a Service Provider Tax?

Use Tax

  1. What is use tax?

General Sales Tax Questions

  1. What are the current sales tax rates?
  2. Where can I get more information about how much sales tax I must collect from my customers?
  3. Where can I find information about sales tax exemptions?
  4. Where can I find exemption affidavits?
  5. What are my recordkeeping requirements?
  6. Do I need to charge Maine sales tax to people purchasing my products from out of state if the product is delivered outside of the state?
  7. Are sales over the Internet taxable?

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Registering for Sales, Use, or Service Provider Tax Accounts

Do I need to register for a sales tax account?

If you are located in the State of Maine and make regular sales of a tangible property or taxable services, you are responsible to register for a sales tax account. 

Taxable services subject to sales tax include rental of living quarters; automobiles, including pickup trucks and vans with the gross weight of less than 26,000 pounds from a person engaged in the business of renting automobiles; camper trailers; motor homes; and the sales of extended service contracts for an automobile or truck.

If you are a remote seller, you are required to register in the same manner as a retailer that has a physical presence in this State if:

A. The gross revenue from the delivery into this State of tangible personal property, products transferred electronically or taxable services in the previous or current calendar year exceeds $100,000; or

B. Sales of tangible personal property, products transferred electronically or taxable services for delivery into Maine were of at least 200 separate transactions in the previous or current year.

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Do I need a Federal Employer Identification Number (EIN) to register for a tax number? How do I apply for an EIN?

Any entity other than a sole proprietor will need an EIN to register for a tax number.  Employer Identification Numbers are issued by the Internal Revenue Service (I.R.S.) by completing Form SS-4.  The form and instructions may be found on the I.R.S. website

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How do I register to get a tax number, also known as a registration number, sales tax account, retailer number, or a reseller certificate?

Apply for a sales, use, and/or service provider tax account electronically.

If you prefer to apply using a paper application, or if you need to apply for another tax type (e.g., retail dealer of fuel), download a PDF of the application.

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What’s a NAICS code?  How do I figure out what mine is?

NAICS stands for the North American Industry Classification System, maintained by the United States Census Bureau.  The codes provided by the NAICS identify the industry a business is engaged in.  The NAICS code is also used when filing your business income tax returns to identify your industry.

When applying for a sales, use, or service provider tax account, you will need to enter a NAICS code.  For further information in determining your NAICS code, visit the Census Bureau’s website.

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Retailer and Resale Certificates

What is the difference between a retailer and resale certificate?

There are two certificates issued by MRS.

A retailer certificate is issued when a person applies to MRS for a sales tax registration.  The retailer certificate acknowledges that the business is registered with MRS for the collection and remittance of sales and use tax, and displays the sales tax registration number.

A resale certificate is the form that allows a retailer to make purchases for resale without paying the Maine sales tax on such purchases.

Additional information regarding Retailer and Resale Certificates can be found in Instructional Bulletin No. 54.

See all Sales, Use, and Service Provider Tax Instructional Bulletins.

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Why didn’t I receive a Resale Certificate?

To qualify for a resale certificate, a retailer must have an active account and report gross sales of $3,000 or more per year.  MRS reviews all active sales tax accounts that do not have an active resale certificate each year.  Resale certificates are automatically issued to retailers that qualify.

If you do not qualify for a resale certificate, sales tax must be paid to your vendor on all items purchased for resale.  A credit for the amount of sales tax paid on items purchased for resale can be taken on your next sales tax return on the line that reads, “Credit for Sales Tax Paid on Goods Resold”.  Enter only the amount of sales tax paid.

If you believe your business qualifies for a resale certificate and one has not been issued to you can email sales.tax@maine.gov

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How do I know if my customers’ resale certificate is current?

MRS has an online Sales and Service Provider Tax Lookup Program that can be used to verify if a retailer, resale, or exemption certificate is valid. 

Go to the Sales and Service Provider Tax Lookup Program

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Filing a Return and Making a Payment

How frequently do I need to file my returns?

Generally, every retailer with an average tax liability of $600 or more per month must file a monthly tax return.

Retailers with average tax liability of $100.00-$599.99 per month may file quarterly returns.

Retailers with average tax liability of less than $100 per month may file semi-annual returns.

Retailers whose average tax liability is less than $50 per year may file an annual return.

Rule 304 establishes required filing frequencies for all sales and use tax return filers.  

See all Rules issued by MRS

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When do I file my return to report sales?

Tax returns are due on the 15th day of the month following your reporting period end date.  If the 15th is on a weekend or holiday the return is due on the next day that is not a weekend or State holiday. 

If you file your returns electronically, you will receive an e-mail reminder before the next return is due.

If you are unable to file electronically you may request a waiver to file paper returns where a tax return will automatically be sent to you for each reporting period about one month before the return is due. email your request for waiver to sales.tax@maine.gov

www.revenue.maine.gov

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Why has my filing frequency changed?

MRS does an annual look back reviewing the tax liabilities of all active accounts. Filing frequencies are adjusted as necessary based on that analysis. Taxpayers are sent a notice of the change in status.

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How do I file electronically?

Go to the Electronic Services page, and select “Sales/Use I-File” or “Service Provider I-File”; this will take you into the filing portal informational page.

For first time users only: Select “Register.”  Enter your tax registration number and your business code, both of which can be found on the Retailer Certificate you received with your welcome packet.  You will then create a password of at least 12 characters in length, to include at least one uppercase letter, one lowercase letter, one number, and one special character.  Click “Next.”

Enter your Company, Owner, and Contact information on the next page.  Important tax information and filing reminders will be directed to the email address you include when you set up the account.  Select “Submit.”  You will be brought back to the filing portal informational page. 

For all registered users:  Select “Login.”  Enter your registration number and password, and select “Next.”

Select “File Return” from the drop-down menu on the next page and click “Next.”  You will be prompted to enter the filing period start date.

Click “Next” and continue to follow the screen prompts until you receive a message stating that you have successfully filed your return; you should also be given a confirmation number.  If you owe tax on the return, select “Make Payment” and follow the screen prompts until you have affirmed your payment and received a confirmation number or printed off a check voucher, depending on your selected method of payment.

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How do I find my registration/account number?

Your registration number is a 7-digit number and can be found on your retailer or resale certificate, as well as in the welcome portfolio you received when you opened your account.  Your registration number can also be found in your filing reminder email.

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How do I find my business code?

Your business code is a 3-digit number that can be found on your retailer certificate, or in the welcome portfolio you received when you opened your account.

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How do I find my password?

First time filers create a password on the first time log in to the Maine Tax Portal.  Passwords must be 12-characters, contain at least one number, at least one capital letter, at least one lower case letter, and at least one special character.

If you already have a password established, but forgot your password, you can reset your password by selecting the “I Forgot My Password” link on the log in screen.

If you still need help logging on to the Maine Tax Portal you can call taxpayer assistance at 207-624-9784.

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How do I pay my taxes?

When filing your return electronically via the I-File program, you will be prompted to click “Make Payment” once the return has been filed.  Your payment options will include ACH Debit or Check Method.

To pay electronically, select ACH Debit.  If this is your first time paying using this method, you will click “Change Banking Information” prior to scheduling your payment.  Once your banking information has been entered, you’ll be able to schedule your payment and affirm it.

If you’d rather pay by check, select “Check Method” and the I-File program will generate a payment voucher you can print and send with your payment.

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I’m trying to pay a bill I received for interest and penalties.  How do I pay that?

Payments of tax, penalties, and interest can be made via an ACH Debit payment through Maine Revenue Services’ EZ Pay Internet Payment System. 

Go to Maine EZ Pay

For first time users only:  Select “Register.”  You will need to enter your Company, Owner, Contact, and Banking information, and create a username and password specific to Maine EZ Pay.  The password must be of at least 12 characters in length, to include at least one uppercase letter, one lowercase letter, one number, and one special character.  Click “Continue.”

For all registered users:  Enter your Maine EZ Pay username and password.  You will select “Bill Payment” for the tax type for which you are making a payment.  You will be prompted to enter the Notice Number of the bill payment, which can be found in the top right corner of the notice.  Click “Next” and continue to follow the screen prompts until you receive a message stating that you have successfully affirmed your payment.  You should receive a confirmation number.

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I’m trying to make a payment and get an error message of “Return not filed for period”.

You most likely selected “Make Payment” for your activity instead of “File My Return.”  A return for the period must be filed prior to initiating a payment.  See How do I file electronically? for additional information. 

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Updating My Account Information

Can I change my business and/or banking information (mailing address, email address etc.) online?

Yes.  Business and banking information is changed through the I-File system.  Go to the Electronic Services page and select the link for Sales/Use I-File or Service Provider I-File.  Select “Login.”  Enter your registration number and password.  Select Change Business Information or Change Banking Information from the activity box.  Enter the information that has changed.  Select Submit.  You will be redirected to the Activity screen.

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How do I amend my return?

Go to Sales Tax Forms, Certificates and Affidavits to access printable versions of sale, use, and service provider returns.  Be sure to choose the correct return for the period you need to amend.  The form must be printed, completed and mailed to the address on the form.  Be sure to complete the form entering all amounts as they should have been originally filed. 

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I am out of business. How do I close my tax account?

To close a tax account, a final return must be filed.

For online filers: After completing the return, return to the Activity menu and choose “Change Business Information.”  Enter the date the business closed.  Choose Submit.  You will be redirected to the Activity screen. 

For paper return filers:  Check the “out of business” box (#2) in the upper right hand corner of your final tax return.  Enter the effective date the business closed.

If you have already filed your final return, send a letter to Maine Revenue Services, P.O. Box 1060, Augusta, ME  04332.  Include your name, the business name (if different), the business address, the business tax account registration number, and the business end date. 

Please return any certificates.

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Service Provider Tax

What is a Service Provider Tax?

The Service Provider Tax is imposed on the providers of certain identified services provided in Maine.  The tax is imposed on the providers of:

  • Cable and satellite television or radio services
  • Fabrication services
  • Rental of video media and video equipment
  • Rental of furniture, audio media and audio equipment pursuant to a rental- purchase agreement
  • Telecommunications services
  • Installation, maintenance or repair of telecommunications equipment
  • Ancillary services
  • Private non-medical institution services
  • Community support services for persons with mental health diagnoses
  • Community support services for persons with intellectual disabilities or autism
  • Home support services
  • Group residential services for people with brain injuries

The law allows the provider to pass the service provider tax on to the consumer, if it is separately stated and identified as “service provider tax”.

Additional information can be found in the Service Provider Tax Instructional Bulletin No. 46. 

View Sales, Use, and Service Provider Tax Instructional Bulletins

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Use Tax

What is use tax?

Use Tax is a substitute for sales tax.  All states which have a sales tax also impose a use tax.  Use tax applies when the correct amount of sales tax has not been charged by the seller.  Common examples are items purchased from outside the State of Maine or over the internet.  The use tax rate is the same as the sales tax rate.

For more information on use tax or to download a form to report an individual use tax liability visit the Sales, Use and Service Provider Tax Forms page.

Businesses can report use tax liabilities directly on their sales tax return. If your business is not required to be registered to collect sales tax, you can register for a use tax only account.  See How do I register to get a tax number? for details about opening a use tax account.

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General Sales Tax Questions

What are the current sales tax rates?

View current sales tax rates here

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Where can I get more information about how much sales tax I must collect from my customers?

Information about what is included in the sale price of an item can be found in Instructional Bulletin No. 39.

Additional information, including various tax rates in the State of Maine, can be found in the Business Guide to Sales, Use & Service Provider Tax.

View Sales, Use, and Service Provider Tax Instructional Bulletins

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Where can I find information about sales tax exemptions?

There are several types of sales tax exemptions issued through MRS: 

Commercial Exemptions.  Taxpayers engaged in Commercial Fishing, Commercial Wood Harvesting, Commercial Agriculture Production, and Commercial Aquaculture Production may qualify for a sales tax exemption.  Additional information about Commercial Exemptions can be found in Instructional Bulletin No. 59.

View Sales, Use, and Service Provider Tax Instructional Bulletins

Permanent Exemptions.  Certain organizations qualify for a permanent sales tax exemption.

View a comprehensive list of organizations and applications

Note:  Federal nonprofit designation does not automatically qualify an organization for a sales tax exemption in the State of Maine.

Additional information about exempt organizations and government agencies can be found in Instructional Bulletin No. 36.

View Sales, Use, and Service Provider Tax Instructional Bulletins

Pine Tree Development Zone.  Tax benefits are available to qualifying businesses of the Pine Tree Development Zones (PTDZ) Program, administered through the Department of Economic and Community Development (DECD).  Information about the PTDZ program can be found on the DECD’s website.

Information regarding the PTDZ sales and use tax exemptions can be found in Instructional Bulletin No. 52.

See all Sales Tax forms, certificates and affidavits, including applications for Commercial Exemptions and PTDZ-related refunds.

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Where can I find exemption affidavits?

Visit the Affidavits, Applications & Certificates page for current sales tax affidavits, applications, and exemption forms.

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What are my recordkeeping requirements?

Accurate records must be kept of all sales and purchases that you make. 

Recordkeeping requirement details: Recordkeeping Requirements for Sales Tax Vendors (PDF)

Additional information can be found in Rule 103, Recordkeeping and Retention on the Rules page.

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Do I need to charge Maine sales tax to people purchasing my products from out of state if the product is delivered outside of the state?

Sales tax does not apply as long as the seller delivers the property to a location outside this State, or arranges shipment directly out of state to the customer by common or contract carrier.  A copy of the sales slip and shipping invoice need to be retained showing that sale was shipped directly out of state.

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Are sales over the Internet taxable?

Sales made over the Internet are subject to the same sales tax application as mail order sales.  If the seller is required to be registered to collect Maine sales tax and the product is shipped to a Maine address, the seller should collect the tax on the sale.  If the seller does not collect the sales tax, the purchaser owes Maine use tax, payable directly to MRS, based on the sale price of the goods.  Most Maine taxpayers report this use tax liability on their Maine individual income tax return.

Exception:  Purchases of a single item costing more than $5,000 must be reported directly to MRS by the 15th of the month following the month of the purchase

Download an Individual Use Tax return on the Sales, Use & Service Provider Tax Forms page.

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