R.I. Government Agencies | Privacy Policy |
What is the purpose of the Streamlined Sales and Use Tax
Agreement?
The purpose of the Agreement is to provide a road map for states who want to
simplify and modernize sales and use tax administration in the member states in
order to substantially reduce the burden of tax compliance. The Agreement
focuses on improving sales and use tax administration systems for all sellers
and for all types of commerce through all of the following:
A. State level administration of sales and use tax collections.
B. Uniformity in the state and local tax bases.
C. Uniformity of major tax base definitions.
D. Central, electronic registration system for all member states.
E. Simplification of state and local tax rates.
F. Uniform sourcing rules for all taxable transactions.
G. Simplified administration of exemptions.
H. Simplified tax returns.
I. Simplification of tax remittances.
J. Protection of consumer privacy.
Where can I find a copy of the Agreement?
The Agreement and much other information about Streamlined can be found at www.streamlinedsalestax.org.
What is a member state?
A member state is one that has been determined by the Streamlined Sales Tax
Governing Board to have changed their sales tax administration law so that they
meet all of the requirements set forth in the Agreement. A seller that
registers under the Agreement must collect sales and use tax for all member
states. The member states are Indiana, Iowa, Kansas, Kentucky, Michigan,
Minnesota, Nebraska, New Jersey, North Carolina, North Dakota, Oklahoma, Rhode
Island, South Dakota, Vermont and West Virginia. Sellers will be notified at
the time a new state becomes a member state.
What is an Associate Member State & are sellers
required to register with them?
An associate member state is one that has been determined by the Streamlined
Sales Tax Governing Board to: (a) either be in compliance with the Agreement,
except that changes to their statutes and rules are not all in effect at this
time; or (b) in compliance with nearly all parts of the Agreement. In either
case, the necessary changes must take effect on or before January 1, 2008.
A seller that is not otherwise required to collect sales or use tax in an associate member state may, but is not required to, register to collect sales or use tax for any of the associate member states. Sellers will be notified at the time a new state becomes an associate member state.
What does it mean to register under the Streamlined Sales & Use Tax Agreement?
This system is a quick and easy way for sellers to register and update sales
and use tax information for all members and those selected associate states at
one time and place.
The use of this system will register a seller in each of the member states and those associate member states chosen by the seller.
Once registered the seller must collect and remit sales and use taxes for all taxable sales into the member states, and those chosen associate member states. This requirement includes all the states that become member states after the seller's registration.
A seller that has a legal obligation to collect a states sales tax (and is not already registered in that state) may be required to complete additional registration forms for that state. This registration system has a web link, email or telephone number for each state for those sellers who do need to complete additional registration forms.
A seller already registered in a member or associate states may still use the registration system. Choosing ?already registered? on the registration form will inform those states that a seller is ?already registered.? States will not issue a duplicate registration, but will just add the Streamlined Sales Tax ID to the current registration.
Am I required to register for sales or use tax using this
registration system?
No, only those sellers that want the benefits of the Streamlined Sales &
Use Tax Agreement must register on this site.
What are the benefits of registering under the Agreement?
What is a Technology Model?
The three technology models described below utilize some form of certified
sales tax administration software. The certification is conducted by the states
to determine the accuracy of the software. If a seller is using or proposes to
use a technology model they will be using must select that model. A seller that
is not using a certified system must select ?Other? on the registration.
Model 1 - Certified Service Provider (CSP)
An agent certified under the Agreement to perform all the seller's sales and
use tax functions, other than the seller's obligation to remit tax on its own
purchases. A CSP is designed to allow a business to outsource most of its sales
tax administration responsibilities. The software system of a CSP will identify
which products and services are taxable, will apply the appropriate tax rate,
will interface with your accounting system, and will file the tax return and
remit the tax to the appropriate taxing authority. Each member and associate
state has certified the accuracy of the software and will provide liability
relief for errors that may result in the incorrect calculation of the tax
amount (the CSP can provide additional information regarding their relief). In
addition, these services will be paid for by the member and associate member
states, at no cost to you, in states that you meet the definition of a
volunteer seller.
Select if the seller is using a CSP as its agent.
Model 2 - Certified Automated System (CAS)
CAS is software certified under the Agreement to calculate the tax imposed by
each jurisdiction on a transaction, determine the amount of tax to remit to the
appropriate state, and maintain a record of the transaction. A CAS is designed
for a business that wants to utilize the tax calculation software that has been
certified by the states while maintaining the responsibility for filing returns
and remitting the tax. The software system of a CAS will identify which
products and services are taxable, will apply the appropriate tax rate, and can
interface with your accounting system. The business that uses a CAS remains
responsible for filing the tax return and paying the tax. Each member and
associate member state has certified the accuracy of the software and will
provide liability relief for errors that may result in the incorrect
calculation of the tax amount (the CAS provider can provide additional
information regarding this relief).
Select if the seller is using a CAS to perform part of its sales and use tax functions, but retains responsibility for remitting the tax return.
Model 3 - Certified Proprietary System
A seller whose own proprietary automated sales tax system has been certified by
the member states and has entered into a performance agreement with the member
states. The Streamlined Sales Tax Governing Board has not yet established a
performance agreement for the certification of proprietary systems.
Until further notice, a seller with their own proprietary system will need to register as ?other?.
Other - No Certified System
A seller that calculates its tax, prepares it tax return, and files and pays
sales tax via a system other than a Model 1, Model 2 or Model 3.
Select this option if you are not using a CSP, a CAS nor have your own system that is certified by the member states.
Who are the Certified Service Providers?
Avalera
Rated four stars in 2005 by CPA Technology Advisor, named in ?Top Ten Awesome
QuickBooks Add Ons? by QuickBooks educator and columnist Douglas Sleeter, and
currently running an average of 4.5 transactions per second against its sales
tax engine for over 2,000 users, Avalara is a leading provider of sales tax
automation for small and medium businesses. Choose among its easily
implemented, integrated editions of AvaTax Connect? for Microsoft Dynamics? GP,
Microsoft Dynamics NAV, Sage MAS 90 / 200 ERP, Sage MAS 500 ERP, Sage Accpac
ERP, and QuickBooks, among others. Or with AvaTax SDK?, link Avalara?s Web
services API with any e-commerce or third-party accounting application. Find
out more at www.avalara.com.
Exactor
Exactor is revolutionizing sales tax compliance by providing the true
next-generation end-to-end, automated solution for secure, reliable and
accurate sales tax record keeping and processing. Exactor's service gives
business owners the ability to automate their sales tax efforts with an ease of
use unparalleled in the industry. Exactor provides an end-to-end solution that
seamlessly and automatically bridges between all elements of a transaction,
starting from the point of transaction, such as the shopping cart, through the
final e-filing and remittance of taxes owing. This allows the merchant to focus
on SALES, while Exactor deals with the TAX. Please visit us at www.exactor.com, e-mail us at
info@exactor.com or call us at (800) 851-8226
SpeedTax
Visit us at www.speedtax.com.
Taxware
A First Data Company (NYSE: FDC), Taxware has provided sales, use and value
added tax compliance solutions for over twenty-five years. Taxware is a
Certified Service Provider (CSP), and also offers a Certified Automated System
(CAS). Taxware processed the first certified transactions in 2001 during the
pilot run by the Streamlined Sales Tax Project. Taxware?s clients include
businesses of all sizes and markets, and its products integrate with accounting
and ERP software systems, including SAP and Oracle Financials. For more
information visit www.taxware.com, or
contact Charles Collins at 919-782-0628 or charles.collins@taxware.com or
Michael Janes at 781-557-2660 or michael.janes@taxware.com .
Who provides a Certified Automated System?
Taxware
A First Data Company (NYSE: FDC), Taxware has provided sales, use and value
added tax compliance solutions for over twenty five years. Taxware is a
Certified Service Provider (CSP), and also offers a Certified Automated System
(CAS). Taxware processed the first certified transactions in 2001 during the
pilot run by the Streamlined Sales Tax Project. Taxware?s clients include
businesses of all sizes and markets, and its products integrate with accounting
and ERP software systems, including SAP and Oracle Financials. For more
information visit www.taxware.com, or
contact Charles Collins at 919-782-0628 or charles.collins@taxware.com or
Michael Janes at 781 557 2660 or michael.janes@taxware.com .
What is the definition of a volunteer seller?
The following is the definition of a Volunteer seller for purposes of Certified
Service Provider (CSP) compensation that is in the Governing Board contract
with the CSPs. The full contract can be found at www.streamlinedsalestax.org.
Volunteer Seller in a Member State or Associate Member State means a Seller that has registered pursuant to Article IV of the Streamlined Sales & Use Tax Agreement through the Central Registration System and:
(1) Represented in its registration that it did not have a legal requirement to register and in fact did not have a requirement to register in the Member State or Associate Member State at the time of registration, regardless of any previous registration the Seller may have made in the Member State or Associate Member State; or
(2) For Sellers who registered with the Member State or Associate Member State after November 12, 2002, the Seller meets all of the following criteria during the twelve (12) month period immediately preceding the date of registration with the Member State or Associate Member State:
a. no fixed place of business for more than thirty (30) days in the Member State or Associate Member State;
b. less than $50,000 of Property, as defined below, in the Member State or Associate Member State ;
c. less than $50,000 of Payroll, as defined below, in the Member State or Associate Member State; and
d. less than twenty-five percent (25%) of its total Property or total Payroll, as defined below, in the Member State or Associate Member State.
Notwithstanding subsection (2) above, any Seller that registered in a Member State or Associate Member State after November 12, 2002 and prior to October 1, 2005, is not considered a Volunteer Seller for that Member State or Associate Member State, if the Seller had a legal requirement to register as a result of administrative, legislative, or judicial action in the state occurring prior to the date of the Seller?s registration.
For purposes of subsection (2) above, ?Property? and ?Payroll? are defined as follows:
(1) ?Property? is the Average Value of the Seller?s real property and tangible personal property owned or rented by the Seller. Property owned by the Seller is valued at its original cost basis. Property rented by the Seller is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the Seller less any annual rental rate received by the Seller from sub-rentals. The ?Average Value? of Property shall be determined by averaging the values at the beginning and end of the twelve (12) month period immediately preceding the date of registration with the Member State or Associate Member State .
(2) ?Payroll? is the total amount paid by the Seller for Compensation during the twelve (12) month period immediately preceding the date of registration with the Member State or Associate Member State . ?Compensation? means wages, salaries, commissions and any other form of remuneration paid to employees and defined as gross income under Internal Revenue Code ?61. Compensation is paid in a Member State or Associate Member State if (1) the individual?s service is performed entirely within the Member State or Associate Member State, (2) the individual?s service is performed both within and outside the Member State or Associate Member State, but the service performed outside the Member State or Associate Member State is incidental to the individual?s service within the Member State or Associate Member State, or (3) some of the service is performed in the Member State or Associate Member State and (a) the base of operations, or if there is no base of operations, the place from which the service is directed or controlled, is in the Member State or Associate Member State, or (b) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual?s residence is in the Member State or Associate Member State.
If my company does not meet the definition of a volunteer
seller is amnesty still available?
Yes, amnesty is available for all sellers unless they meet the limitations.
What are the amnesty limitations?
Amnesty is available in all Streamline states. However, the amnesty expires in
all the full member states on September 30, 2006 unless the seller uses a CSP
or CAS. Member and associate member states will provide amnesty for uncollected
or unpaid sales or use taxes to a seller who registers to pay or collect and
remit applicable sales or use taxes on sales made to purchasers in the state.
Amnesty is applicable only to sales or use taxes due from a seller in its
capacity as a seller and not to sales or use taxes due from a seller in its
capacity as a purchaser.
The amnesty precludes an assessment for uncollected or unpaid sales or use taxes together with interest or penalty for sales made during the period the seller was not registered in the state, provided registration occurs within 12 months of the effective date of the state's participation in the Agreement. The amnesty will be granted regardless of ?nexus? of the seller if all other requirements are met.
No amnesty is available for sales and use taxes already paid or remitted to a state or to taxes collected by a seller. No amnesty is available under the Agreement for taxes other than sales or use taxes.
A member state may allow amnesty on terms and conditions more favorable to a seller than is required by the Agreement.
To obtain amnesty, the seller, both those who have a legal obligation to collect in a state and those who don?t, must agree to register in all full member states of the Agreement if not currently registered. This includes registration in full member states joining the Agreement after the seller's registration. The seller may elect to register in associate member states.
The seller is not eligible for amnesty in a member state if the seller:
To obtain amnesty, the seller must use the Streamlined Sale Tax Registration System.
Is there a fee to register under the Agreement?
There are no fees or other charges for a seller to register in a state in which
the seller has no legal requirement to register. There may be a fee assessed by
some states if the seller has a legal requirement to register.
Will a seller be notified when a new member state joins?
Yes, all sellers registered under the Agreement will be notified, potentially
by email, of their requirement to begin collecting sales and use tax in new
member states. If the new state is an associate member the seller will be given
the option of registering to collect tax for that state.
May I use the SST registration even if I have a legal
obligation to register in a state?
Any seller that wants or needs to register in all the member states may use the
registration system. A seller that has a legal obligation to register in a
state will also need to contact those states for further sales tax licensing
requirements. A web site for each member and associate state is provided by a
link on the registration page.
If my company is already registered in some of the member
states how will this affect my Streamlined registration?
There is a place on the registration form to list if you are ?already
registered? in a state. In this case most states will not issue a duplicate
registration, but will just add the Streamlined Sales Tax ID to the current
registration.
What do I do if I registered mistakenly with Streamlined,
or I no longer want to participate?
A seller may cancel their registration through the registration system. Go to www.sstregister.org/sellers and
click on Update Registration. At this point you will need your SST ID and
password to continue. Click on ?Change Registration Status? and follow the
instructions to cancel your registration.
If a seller collected tax for member or associate states during the time they were registered, they are required to remit the tax to the state(s).
A seller should consult with the state or their attorney or accountant before they cancel their registration in any state where they have a legal obligation to register to determine the requirements for remaining registered with that state.
Any seller who received an amnesty from any Streamline state will lose that amnesty if they cancel their registration within 36 months of registration. They will also lose their amnesty if they cancel in any full member state during the 36 month collection requirement.
Any seller that wants to register after having canceled their registration must complete a new registration and receive a new SST ID.
I registered with Streamlined and am now registered in
more states than I want. May I cancel in the states in which I do no business?
A seller must remain registered with all of the member states, or cancel with
all of the member states. If a seller wants to register with only a few states
they should not use the Streamline registration system.
Amnesty is not available in any state unless a seller is registered with all of the full member states.
My company went out of business. If I cancel will I lose
my amnesty?
If a seller goes out of existence and has paid all of the taxes due, they will
not lose the amnesty when they cancel their registration.
To cancel go to www.sstregister.org/sellers and click on Update Registration. At this point you will need your SST ID and password to continue. Click on ?Change Business Status? and follow the instructions to cancel. A seller will not be able to go back into the update function once they have checked the out of-business button.
What are the requirements for filing returns?
The CSP will file the tax returns for those sellers that use a CSP. For all
other sellers, each state will provide information on how to file and pay taxes
for that state.
There is only one sales tax return required for each state for each taxing period. A separate return may be required to report use tax due from a seller in its capacity as a buyer.
A seller that uses a CAS will have the ability to file a Simplified Electronic Return.
All other sellers (except those noted below) may use a Simplified Electronic Return at the state?s discretion. A seller may utilize each state?s existing returns or the Simplified Electronic Return.
In most states a seller that registered as an ?other? does not have to file a tax return more often than once a year unless the seller collects $1,000 in taxes. Once a seller collects a $1,000 in tax for a state the seller must file and pay that tax. At that point, a state may also require a return and payment more often than once a year.
A seller who was already registered in a state should continue to file as they have been, unless instructed differently by the state
How are payments handled?
The CSP will pay the tax for those sellers that use a CSP. For all other
sellers, each state will provide information to sellers on how to pay taxes for
that state.
States must accept ACH Debit, ACH Credit or same day alternative payment options if the seller is using the simplified electronic return. Sellers not using the simplified electronic return may choose an option currently available with each member state.
If the tax payment is due on bank holiday or a weekend, the payment is due the next business day.
Some sellers in some states may have to make more than one tax payment per month. The state will inform the seller of the process for those payments.
I do not remember my password. How to I find it?
There is a password recall on the registration system. Click on Update
Registration and then the ?recall password? link. The password will be emailed
to you.
Are sellers issued an SST ID number for each state?
Once the registration process is complete the seller will be given one unique
Streamlined Sales Tax ID number to be used in all states. The SST ID is the
seller?s registration number and is to be used for communication with the states
or the Streamlined Administrator. It may, at the discretion of each state, be
used when filing returns and paying sales or use tax.
The Streamlined ID number can be used universally on a resale certificate in all member and associate states.
Who can be contacted if sellers need help with technical
problems?
If a seller is having technical problems with this application, contact the
Administrator at support@sstregister.org
What is meant by FEIN/SSN?
An FEIN is a Federal Employer?s Identification Number. For further information
or to apply for an FEIN, please go to www.irs.gov
and request form SS-4.
An SSN is a social security number. If the business is a sole proprietorship, enter the SSN of the owner of the business.
I mistakenly used the wrong FEIN when I registered. How do
I fix it?
A seller cannot change the FEIN or Social Security fields once they have
registered. If a seller needs to fix an FEIN they should email the
Administrator at support@sstregister.org with an explanation.
If a seller wants to change the ownership they must cancel the current registration and apply for a new SST ID.
What is entered in Legal Name?
Enter the legal name of the business. If the business is a sole proprietorship,
enter the name of the person owning the business.
What is meant by State of Incorporation or Organization?
Enter the state where the business is incorporated or the state where the
company is organized.
What will be mailed to the mailing address?
Welcome letters, registration packets, bills, refunds and other correspondence
from each state will be mailed to the mailing address. If a seller chooses
model 1 and wants this information mailed to the CSP they should enter the
CSP?s mailing address in this field.
What is the SSTP Beginning Effective Date?
This is the date that the seller will begin collecting tax for each state in
which they were not previously registered. The date cannot be more than 30 days
in the future.
What if a seller registered and used the wrong effective
date?
The company will not be ready to begin collecting in each state by the
effective date that they submitted.
If a company is not ready to begin collecting tax by the beginning effective
date the seller needs to cancel their registration and reapply when they are
ready.
What is a NAICS code?
The North American Industry Classification System (NAICS) is a unique 6 digit
system for classifying business establishments according to their primary
industrial activity. Please choose the 6-digit code that most closely
identifies the seller?s primary business activity. The following web link may
be used to look up a NAICS code.
http://www.census.gov/epcd/www/naics.html
I got a confirmation number when I updated my information.
Will I use that number if I need to update again?
A confirmation is provided each time a registration change is submitted. It
should be retained as proof that registration data was submitted, but does not
need to be provided for subsequent registration updates.
The company originally registered has been acquired and
the contact person is no longer with the company. How do I change the contact
information and email address?
If the seller knows the SST ID and password, they can go to www.sstregister.org/sellers and
click on Update Registration. Select Update Business/Contact Info to make any
changes to the contact information and email address.
If the seller does not know the password, the system has a password recall function. But the password is emailed to the contact person currently listed on the registration. If that person has left the company the seller needs to contact the Administrator at support@sstregister.org to update the email address for the new contact.
support@sstregister.org
Definition of volunteer seller for purposes of CSP compensation:
(b) Volunteer Seller in a Member State or Associate Member State means a Seller that has registered pursuant to Article IV of SSUTA through the Central Registration System and:
(1) Represented in its registration that it did not have a legal requirement to register and in fact did not have a requirement to register in the Member State or Associate Member State at the time of registration, regardless of any previous registration the Seller may have made in the Member State or Associate Member State; or
(2) For Sellers who registered with the Member State or Associate Member State after November 12, 2002, the Seller meets all of the following criteria during the twelve (12) month period immediately preceding the date of registration with the Member State or Associate Member State:
a. no fixed place of business for more than thirty (30) days in the Member State or Associate Member State;
b. less than $50,000 of Property, as defined below, in the Member State or Associate Member State;
c. less than $50,000 of Payroll, as defined below, in the Member State or Associate Member State; and
d. less than twenty-five percent (25%) of its total Property or total Payroll, as defined below, in the Member State or Associate Member State.
Notwithstanding subsection (b)(2) above, any Seller that registered in a Member State or Associate Member State after November 12, 2002 and prior to October 1, 2005, is not considered a Volunteer Seller for that Member State or Associate Member State, if the Seller had a legal requirement to register as a result of administrative, legislative, or judicial action in the state occurring prior to the date of the Seller?s registration.
(c) For purposes of subsection (b)(2), ?Property? and ?Payroll? are defined as follows:
(1) ?Property? is the Average Value of the Seller?s real property and tangible personal property owned or rented by the Seller. Property owned by the Seller is valued at its original cost basis. Property rented by the Seller is valued at eight times the net annual rental rate. Net annual rental rate is the annual rental rate paid by the Seller less any annual rental rate received by the Seller from sub rentals. The ?Average Value? of Property shall be determined by averaging the values at the beginning and end of the twelve (12) month period immediately preceding the date of registration with the Member State or Associate Member State.
(2) ?Payroll? is the total amount paid by the Seller for Compensation during the twelve (12) month period immediately preceding the date of registration with the Member State or Associate Member State. ?Compensation? means wages, salaries, commissions and any other form of remuneration paid to employees and defined as gross income under Internal Revenue Code ?61. Compensation is paid in a Member State or Associate Member State if (1) the individual?s service is performed entirely within the Member State or Associate Member State, (2) the individual?s service is performed both within and outside the Member State or Associate Member State, but the service performed outside the Member State or Associate Member State is incidental to the individual?s service within the Member State or Associate Member State, or (3) some of the service is performed in the Member State or Associate Member State and (a) the base of operations, or if there is no base of operations, the place from which the service is directed or controlled, is in the Member State or Associate Member State, or (b) the base of operations or the place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual?s residence is in the Member State or Associate Member State.
D.3. Losing Volunteer Seller Status. A Volunteer Seller shall lose its status as a Volunteer Seller in a Member State or Associate Member State if:
(a) as a result of activities the Seller conducts in a Member State or Associate Member State after the date of the Seller?s registration in the Member State or Associate Member State, the Seller becomes legally obligated to register in that Member State or Associate Member State; and
(b) as a result of activities the Seller conducts in a Member State or Associate Member State after the date of the Seller?s registration in the Member State or Associate Member State, the Seller fails to meet one or more of the criteria under subsection D.2 (b)(2) above in that Member State or Associate Member State. For purposes of determining whether the Seller meets the criteria, the ?Average Value? of Property shall be determined by averaging the values at the beginning and end of the last fiscal year of the Seller that terminates at least thirty (30) days before the date the determination is made; and Payroll shall be the total amount paid by the Seller for Compensation during the last fiscal year of the Seller that terminates at least thirty (30) days before the date the determination is made.
The Streamlined Sales and Use Tax Agreement makes a distinction between a seller that "has no legal requirement to register" in a state and those that do. Specifically, if a seller does not have a legal requirement to register, the seller cannot be charged a registration fee by the state (Section 303 (B)), they can file their returns less frequently under certain circumstances (Section 318 (D)), and they can complete their registration using this online registration process and not be required to provide the state with any additional information (Section 401 (C)).
An individual state may challenge a seller?s representation that they do not have a legal requirement to register in that state. States are encouraged to accept the seller?s representation unless the state can demonstrate that the seller could not have had, under the laws that were in existence at the time of registration, a good faith understanding that they had no legal requirement to register.
A seller?s legal obligation to register in a state does not impact the amnesty that is available to the seller. A seller is still eligible for amnesty in all of the member states and associate member states regardless of their answer to this question on the registration system.