The Rhode Island (RI) state sales tax rate is currently 7.0%.
Rhode Island is one of the few states with a single, statewide sales tax. RI is a Streamlined Sales Tax (SST) state. Avalara is a Certified Service Provider (CSP) for SST.
Businesses that sell, rent or lease taxable tangible personal property at retail in Rhode Island must register with the state and collect sales tax. Providers of taxable services must also register with the state.
As a Streamlined Sales Tax state, Rhode Island encourages out-of-state businesses without a sales tax obligation to register with the state and collect.
How to Register
New businesses may register online through the Division of Taxation’s Business Registration. Business Application and Registration forms may also be submitted by mail or in person at the Division of Taxation in Providence. Retail sales permits may be renewed through the Retail Sales Permit Renewal System.
Businesses selling into multiple states may register with the Streamlined Sales and Use Tax Project.
How to File and Pay
Most businesses file monthly returns. However, businesses with a sales and use tax liability averaging less than $200 per month for six consecutive months may be permitted to file quarterly returns. The Tax Administrator must authorize quarterly returns in writing.
Zero returns (no sales tax due) are required.
Sales tax returns are due on or before the 20th day of the month following the month when sales tax is collected. Additional information.
Avalara Sales and Use Tax Products for Rhode Island
AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.
TrustFile - Avalara TrustFile provides detailed sales tax reporting for online sellers. Allowing businesses to know exactly where, when and how much to file. Ecommerce business owners can use TrustFile to determine whether or not they are collecting the right amount of sales tax in each individual state, and then store a record of their sales tax history securely in the cloud for free.