Rhode Island – Direct Mail, Filing Requirements, and Purchaser Liability Regulations

SALT Report 1208 – The Rhode Island Division of Taxation has adopted regulations to conform to the Streamlined Sales and Use Tax Agreement (SST) provisions regarding direct mail, relief from liability, and uniform return rules.

Direct Mail Sourcing

  • A purchaser of advertising and promotional direct mail may provide the seller with either a direct pay permit, a SSUTA certificate of exemption claiming “direct mail”, or information showing the jurisdictions to which the advertising and promotional direct mail is delivered to recipients
  • If a purchaser of direct mail provides the seller with a direct pay permit, the purchaser shall not be required to provide a direct mail exemption certificate or delivery information to the seller
  • The sale of “other direct mail” is not taxable under the Rhode Island sales and use tax law

Relief from Liability

A purchaser is relieved from liability for failing to pay the correct amount of sales or use tax in the following circumstances:

  • A purchaser’s seller or CSP relied on erroneous data provided by the state on tax rates, taxing jurisdiction assignments, or in the taxability matrix completed by that member
  • A purchaser holding a direct pay permit relied on erroneous data provided by the state on tax rates, taxing jurisdiction assignments, or in the taxability matrix completed by that member state
  • A purchaser relied on erroneous data provided by that member state in the taxability matrix completed by the state, and
  • Provides relief to purchasers that rely on erroneous data provided by the state in the state’s taxability matrix

Uniform Tax Returns

  • A seller registered under the SST that indicates at the time of registration that it anticipates no sales sourced to the state is not required to file a return.
  • A seller registered under the SST with no legal requirement to register in the state that fails to file a return is granted a minimum of 30 days’ notice to file prior to establishing a liability amount for taxes based solely on the seller’s failure to file a timely return.

For Further Information:

Rhode Island Division of Taxation Reg. SST 11-01 effective December 1, 2011