Rhode Island – Sales Tax Advisory for Retailers

SALT Report 1166 – The Rhode Island Division of Taxation has issued an informational bulletin for retailers regarding a number of key changes in the administration of sales tax. The advisory discusses coupon booklets used to remit sales tax and annual reconciliation reports.
Coupon Booklets
Under the old system, the Tax Division mailed sales tax booklets once a year to retailers.  Each booklet contained the retailer’s sales tax permit, along with coupons for making sales tax payments, sections on when to file the required reconciliation and mailing labels.
However, due to recent changes in sales tax law, the Tax Division not to print new booklets, and instead arranged to make a separate series of mailings. In June 2011, the agency mailed annual sales tax permits to about 32,000 retailers.  In August 2011, the agency mailed interim payment coupons; one set for monthly filers and another for quarterly filers.
The Tax Division will mail a new sales tax coupon booklet in December 2011. Each booklet will include a supply of coupons covering the filing period through June 2012, as well as a form for making an annual reconciliation return and instructions. However, if you pay sales tax electronically, via electronic funds transfer then the coupon book is unnecessary.
Annual Reconciliations
If you hold a Rhode Island sales tax permit you must file an annual reconciliation form by January 31, 2012 itemizing your total sales, deductions, and other items.
Annual Reconciliation Changes:
  • Under the old system, the reconciliation was done quarterly.
  • Under the new system, the reconciliation must be done annually and is due by January 31, 2012.
  • If you are a quarterly sales-tax filer, you are still required to file your quarterly sales tax return and make your quarterly sales tax payment, however, the quarterly reconciliation is no longer necessary.
  • If your annual reconciliation shows that you owe to the Tax Division a balance of less than $1, then you are not obligated to pay it; the agency will treat it as a rounding issue.
  • If your annual reconciliation shows an over-payment, you may apply it against your tax balance for future periods or, you may file a refund claim, and,
  • You must complete and file the annual reconciliation return on paper, even if you pay sales tax electronically.

For Further Information:

Sales Tax Advisory for Retailers Rhode Island Division of Taxation