Maine Sales Tax Filing Update October 2019
Maine has passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective October 1, 2019.
• Amazon, eBay, Etsy and Walmart began this collection on October 1, 2019.
Please review general information regarding Marketplace Facilitators and how your TaxJar Sales Tax Reports support these changes here in our FAQ.
In this article, we summarize Maine's state guidance on the following questions:
- Do I need to register for a sales tax license in Maine?
- Should I cancel my existing registration if all my sales are marketplace-collected?
- Do I need to collect sales tax on Maine sales on non-marketplace platforms?
- Do I still need to file returns in Maine?
- How do I file without paying double tax on the sales that were collected and remitted by my Marketplace?
I've never registered for a Maine license. Do I need to register for a sales tax license in Maine now?
If you are a retailer with a physical presence in Maine or you are a remote seller who has crossed the economic nexus threshold for Maine ($100,000/year in gross revenue, or more than 200 separate sales transactions in Maine in the current or last calendar year), then you will need to register for a Maine sales tax license.
- If you've imported your sales across all platforms into your TaxJar account, you can determine if you have economic nexus in the state by running the Sales & Transactions Checker.
- If you do not meet any of the criteria that create nexus in Maine (physical, economic or otherwise), you won't need to register for a sales tax license in this state.
I have already registered for a license in Maine and all of my sales are Marketplace-only sales. Should I cancel my existing registration?
No. If you are a marketplace seller who has already registered due to physical presence (such as inventory stored in your Marketplace's warehouse) or you have voluntarily registered, you should remain registered, according to the DOR.
Do I need to collect taxes on my Maine sales on other platforms?
Yes--if you have nexus in the state (physical or economic) and you make sales to customers in Maine on platforms outside of the marketplace that is automatically collecting and remitting, you will also need to collect tax on your end on the Maine orders that are processed on the other platforms.
Do I still need to file returns in Maine?
Yes--once you register for a license, you will be required to file a return based on the frequency the state has assigned you.
- If you've previously registered, the state expects you to remain registered and continue to file returns including zero returns.
I still need to file returns in Maine. How do I do this without paying double tax on the sales that were collected and remitted by my Marketplace?
When you file, you'll include your Marketplace Sales in the Gross Sales. Then, enter 'Gross Sales" from our Report into Line 1 ("Gross Receipts").
- Then report "Marketplace Sales" in the value you enter on line 2a For Exempt Sales.
- If all of your sales are Marketplace sales, once you deduct the marketplace sales, you will need to file a $0 return.
If you make sales on other platforms in addition to the Marketplace, you'll need to make sure you remit the tax you collected for those sales when you file.
- If you're enrolled in AutoFile for Maine, our system will handle the Marketplace sales deduction process automatically.