As an e-commerce seller, you will need to collect sales tax in Rhode Island if you have:
(1) Gross revenue exceeding $100,000 or 200 or more separate transactions in the previous calendar year (economic nexus), or
(2) Physical presence in Rhode Island (physical nexus).
Below, we will highlight some of the basic provisions of Rhode Island sales tax law.
What is the tax rate range for Rhode Island?
State: Rhode Island’s general sales tax rate is 7%.
Local: Rhode Island does not have local sales tax jurisdictions.
Do you have physical or economic nexus in Rhode Island?
Physical nexus. Certain business activities create physical nexus for retail merchants in Rhode Island. If you have physical nexus, you are required to collect and remit sales tax on all taxable sales that are shipped to Rhode Island. Examples of business activities that can create physical nexus:
- Selling or delivering in Rhode Island, or any activity Rhode Island related to the selling or delivering Rhode Island of tangible personal property or prewritten computer software delivered electronically or by load and leave, or vendor-hosted prewritten computer software, or specified digital products
- Maintaining, occupying, or using in Rhode Island any office, place of distribution, sales or sample room or place, warehouse or storage place, or other place of business
- Having any subsidiary, representative, agent, salesperson, canvasser, or solicitor permanently or temporarily, and whether or not the subsidiary, representative, or agent is qualified to do business in Rhode Island, operate in Rhode Island for the purpose of selling, delivering, or the taking of orders for any tangible personal property, or prewritten computer software delivered electronically or by load and leave, or vendor-hosted prewritten computer software, or specified digital products
Economic nexus. Remote sellers and marketplace facilitators that have gross revenues of $100,000 or more or 200 or more separate transactions in the previous calendar year are required to collect and remit Rhode Island sales or use tax.
- Sales you make through a marketplace are included in the total.
- Your obligation to collect begins on January 1 following the date you meet the threshold
What are examples of sales of taxable items?
- Tangible personal property, unless specifically exempted
- Certain services
- Leasing or renting tangible personal property
- Digital goods
- Software as a service (SaaS)
What are examples of sales of nontaxable/exempt items?
- Food (except candy, dietary supplements, soft drinks, and prepared food)
- Clothing (portion of sales price over $250 is taxable)
- Prescription drugs
- Certain agricultural items
Are there any sales tax holidays?
Currently, Rhode Island does not have any sales tax holidays.
Is Rhode Island a member of the SST (Streamlined Sales Tax)?
Currently, Rhode Island is a full member of the Streamlined Sales Tax Governing Board (SSTGB).
How to get a sales tax permit / links to register in this state?
You can register:
By mail or in person at the Division of Taxation, One Capitol Hill, Providence, RI 02908
Rhode Island is a one-rate state (7%), there are no local jurisdictions that impose a sales tax.