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Are you liable for use tax but not paying it?The State of Maine use tax is similar to the sales tax but is not charged to customers at the time of purchase. Rather, the use tax is paid directly to the state by the consumer (if a resident). If you or your company purchase products from another state via telephone, mail, internet or similar forms of commerce, you may be subject to the use tax. The use tax is charged as a percentage of every taxable purchase on which sales tax has not already been paid. Example #1, Joe Smith Consulting purchases a computer for business use from a mail order vendor who does not have a business presence in the state and is not required to collect sales tax. Joe Smith Consulting is liable to the State of Maine for use tax on the purchase price of that computer. Example #2, Fred Jones purchases a home computer for games and internet use from the same mail order vendor. Fred Jones is liable to the State of Maine for use tax on the purchase price of his computer. Please contact us if you have any questions regarding this matter. |
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