Sales Tax Information for Exhibitors at ANE

 
 

Please read all of the information below carefully as everything is very important. You could potentially be denied your dealer or artist alley space if you do not submit the required tax information before the convention starts.

Introduction

Anthro New England is required to provide the Massachusetts Department of Revenue (DOR) a Massachusetts Sales Tax ID for all vendors attending Anthro New England. That means everyone in the Dealers Den and the Artists Alley that sells anything throughout the weekend is required to provide their individual Tax IDs to us before the convention, and collect sales tax on applicable items throughout their time at ANE. Only the primary business at each table-space is required to submit a tax ID - assistants are not required to submit Tax IDs. Only the primary business registered at each table is allowed to do business – you may not “share” a table.

If you do not already have a valid Massachusetts DOR Tax ID, you can follow these easy steps online to first get an Employer Identification Number (EIN) with the IRS, which you can then register as your Tax ID with the Massachusetts DOR.

  1. Generate an EIN with the IRS:
    https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

  2. After you get your EIN from the IRS, make an account with MassTaxConnect to register your EIN with the Mass. DOR.
    https://mtc.dor.state.ma.us/mtc/

*Note: there is a difference between your Mass. Tax ID and your MassTaxConnect System ID, mentioned because you can access both pieces of information from your MassTaxConnect account.

You do not need to renew this process every year, it's a permanent and perpetual registration unless you cancel it. It is also advised that you make a copy of your Tax ID for your own records.

If you do not register with the Massachusetts DOR to collect Sales Tax, you will not be allowed to participate as an exhibitor at Anthro New England. Anthro New England will provide a secure form for you to submit your Mass. Tax ID to us, and if you do not have that information you may be asked to leave your merchants space at the convention.

Tax IDs for non-US residents

If you do not live/work in the USA already, the process for acquiring a Tax ID becomes significantly more difficult. A variety of processes to generate tax forms require a US Social Security Number, which non-US residents cannot easily obtain. Anthro New England is not qualified to give anyone advice on how to proceed with this matter.

An option might be to phone call the Massachusetts Department of Revenue and the Internal Revenue Service and explain what you are trying to achieve. You might explain that you are intending to sell artwork at a one-time 3-day event in Cambridge, MA, and that they require you to submit an Employee Identification Number (EIN) or Individual Taxpayer Identification Number (ITIN). A link to obtaining an ITIN while abroad can be found here:
https://www.irs.gov/individuals/international-taxpayers/obtaining-an-itin-from-abroad

Even if you do obtain an ITIN, you'll still be required to provide other necessary documentation in that process, which includes but is not limited to a work permit. Work permits are issued by the U.S. Citizenship and Immigration Services department (USCIS), not by the IRS or the DOR.

As a warning, this process overall for international exhibitors is very lengthy. It is expected that you be waiting for all appropriate documents for months, not days or weeks.

If you are an international exhibitor, please contact us at dealers@anthronewengland.com for more information.

Massachusetts Sales Tax and Exemptions

A very helpful guide to the process of collecting and remitting your sales taxes is from the Massachusettes DOR website:
http://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/salesuse-tax-guide.html

Of important note is this section:
"What are the responsibilities of a sales/use tax vendor? Massachusetts sales/use tax vendors are responsible for: Registering with DOR to collect sales/use tax; Collecting the 6.25 percent sales/use tax on taxable sales or rentals of tangible personal property or telecommunications services. Please note: The tax must be separately stated and separately charged on all invoices, bills, displays or contracts; and Remitting all sales/use taxes to DOR with the appropriate Massachusetts sales/use tax return on time."

As of the date of Anthro New England 2017, the Massachusetts sales tax rate is 6.25% of the item's sale price.

Some goods/services are exempt from Sales Tax. Please see the Tax Exempt Items section of the Mass DOR website for more information. Please be aware that you may be required to file an informational return with the Mass DOR even if you sell exclusively tax-exempt items.

Examples

  • On clothing items specifically: Any individual clothing item below $175 is exempt from taxes. If there is a clothing item that costs over that amount, you start taxing after the first $175.
    Let's say the item costs $200: Only $25 of that item's selling price would be taxable.
    Example: $200 selling price + Tax ($25 x .0625) 1.56 = $201.56 Total.

  • On a regular item, you tax the item by the selling price (save those items exempt to tax as shown in the above link)
    Example: $200 selling price + Tax ($200 x .0625) 12.50 = $212.50 Total.

An alternative way to calculate tax into your item is to charge a flat amount and have tax included in that price. Example: You charge your customer $20 for an item which includes the tax already. That means your item sells for $18.82, and there is $1.18 in taxes. The calculation should be the intended final selling price of the item ($20) divided by 1.0625, which will equal the cost of the item before taxes. $20/1.0625 = $18.82 (item) , $20-18.82 = $1.18 (tax). However, per the MA DOR: "Please note: The tax must be separately stated and separately charged on all invoices, bills, displays or contracts."

*Please be aware that there are a list of items unrelated to tax that are not acceptable to sell at Anthro New England, including but not limited to: tobacco, firearms, alcohol, controlled substances and food.

Submitting your Massachusetts Tax ID to Anthro New England

For ANE 2017, we will be asking you to provide your Tax ID information in forms that also ask other information, be you an exhibitor in the Dealers Den or Artists Alley.

  • For Dealers, we will email you with a link to the form.
  • For Artists Alley exhibitors this information will be asked when you apply for the Artists Alley lottery.

Both Dealers and Artists Alley vendors are required to submit this information to Anthro New England before the beginning of the convention, or may be denied their vendors space.

If you have submitted your Tax ID to us, and have not used or sold any goods/services at Anthro New England, please contact us to let us know to remove your tax information from our records.

Please do NOT email your Mass. Tax ID to us as that is not a secure system.

Filing your tax returns

You are responsible for making the appropriate filings and returns to the Massachusetts DOR and the US Internal Revenue Service as required for your tax situation. These returns and filings may be expected yearly, quarterly, or monthly, and may be required even for periods with no sales (a "zero return"). You are solely responsible for making these filings or appropriately closing your tax account(s). Please check with the appropriate authorities or your own accountant or lawyer, as we are unable to offer specific advice or submit these filings for you.

Questions

If you have any questions, please contact us at dealers@anthronewengland.com and we will do our best to answer any questions. However, we urge you to check with the Massachusetts DOR as they are the ultimate authority on Tax IDs, or with your own accountant or attorney, as we are unable to offer specific tax or legal advice with regard to any exhibitor's specific situation.

Last updated: 2016-12-13