Please read all of the information below, as it is extremely IMPORTANT.
The Massachusetts Renaissance Faire highly recommends that each of our vendors obtain a Massachusetts Sales Tax ID and submit it to the Massachusetts Department of Revenue (DOR). This means that all vendors should register with the Massachusetts DOR and collect sales tax on the products they sell.
If you do not already have a valid Massachusetts DOR Tax ID, the best way to obtain one is to generate an Employer Identification Number (EIN) with the United States Internal Revenue Service (IRS) and then register it with the Massachusetts DOR as your Tax ID. This process is free, and can be completed online in a short period of time.
First, generate an EIN with the IRS:
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
After you have received your EIN from the IRS, register it with
the Massachusetts DOR:
https://mtc.dor.state.ma.us/mtc/_/
Generate an account in MassTaxConnect and follow all instructions in that system. You should be able to access all of your information, including your tax ID and your MassTaxConnect system ID. It is advised to keep a copy of it for your records, whether a printout, screencap, .pdf, etc. This is a permanent registration and does not have to be renewed each year, unless it is canceled.
The Massachusetts DOR Tax ID should be indicated on your signed merchant agreement prior to the faire.
Clarifications and Examples
To clarify who must submit a Massachusetts DOR Tax ID, here are three common examples for Vendors:
- A Vendor is an individual or business that has rented tent, Craft Barn, or Roll-Down Booth Space at our faire. As they are selling for their own benefit, they should submit a Massachusetts DOR Tax ID to Mass Ren Faire.
- An assistant helping someone in their space. They help run the space but are selling someone else’s products. Assistants are not selling anything of their own and are not making money directly off the sales (even if they’re being paid for their work). Thusly, they do not need to submit a Massachusetts DOR Tax ID to Mass Ren Faire.
- A vendor or artist who is sharing the space of another vendor. If multiple people are sharing a space and each one is selling his or her own items, each individual vendor submit a Massachusetts DOR Tax ID to Mass Ren Faire.
It is the responsibility of the vendor purchasing the space at Mass Ren Faire to make sure that all applicable people using said space follow the proper procedures with Massachusetts DOR Tax ID submissions to Mass Ren Faire.
Obtaining a Tax ID for Non-US Residents
If you are a resident of any country other than the United States, you may encounter numerous obstacles in fulfilling the requirements to obtain a Tax ID from the Massachusetts Department of Revenue. In these situations the process can be much more complicated and take a longer period of time. Taking at least ten weeks to obtain the Tax ID is not uncommon.
Mass Ren Faire is not qualified to give advice for anyone’s specific scenario. The most we can do is to point you in the right direction. The best option is to call via phone the Massachusetts Department of Revenue and the Internal Revenue Service (IRS) directly and explain what you are trying to accomplish. You may explain that you are attempting to sell goods at a two-weekend, 4-day long event in Cummington which requires you to submit an Employee Identification Number (EIN) or Individual Taxpayer Identification Number (ITIN). Both the EIN and ITIN require a Social Security number, which is not available to non-US citizens.
The link for obtaining a ITIN while abroad can be found here.
Even if you obtain a DOR Tax ID, you will also be required to have all other necessary documentation including, but not limited to, a work permit. Work permits are issued by the U.S. Citizenship and Immigration Services department, not by the IRS or DOR.
Current Sales Tax and Exemptions
The current sales tax in Massachusetts is 6.25% of the item’s
cost. Some items and services are also exempt from the sales tax:
http://www.mass.gov/dor/individuals/taxpayer-help-and-resources/tax-guides/salesuse-tax-guide.html
For example, individual clothing items priced under $175 are
exempt from sales tax. Any clothing item priced over $175 requires sales tax to
be paid only on the difference. So, if a dealer sold a $200 dress, only the
difference of $25 would be applicable to Massachusetts sales tax. The total
would be:
$200 + (6.25% of $25) = $200 + $1.56 = $201.56
However, even if a vendor is selling only products that would be exempt from sales tax, he or she is still encouraged to submit a Massachusetts DOR Tax ID. This is essentially to inform the state that the products sold were below the tax threshold.
How to Handle the Sales Tax When Pricing and Selling
When dealing with charging the sales tax to a customer, there are two basic ways to proceed:
- Add the 6.25% sales tax to the cost of the product. For example, if an artist is selling a $10 print to someone, the 6.25% sales tax would be added to the $10.00 cost of the print making the total $10.63. By using this method, the sales tax is added on top of the base prices. However, the exhibitor will also have to deal with change instead of just whole bills.
- Include the tax in the price. This method already includes the 6.25% sales tax in the $10.00 cost of the print. In this case, the print would really cost $9.41. The sales tax of 6.25% of $9.41 would be $0.59. Adding the base cost of $9.41 and the sales tax of $0.59 results in the $10.00 total. This might be seen as cutting into profits a little, but the vendor is also dealing in whole dollars all weekend and will not need to worry about change.
As always, consult with a tax professional for answers to questions. The Massachusetts DOR is also very helpful over the phone.
Submit Your Massachusetts DOR Tax ID
Please submit your Massachusetts DOR Tax ID (EIN) to Mass Ren Faire on your signed merchant agreements.
Please refer to the above Clarifications and Examples section to determine who in your party is required to submit one.
DO NOT submit your Exhibitor Tax ID until you have paid for your vendor space
DO NOT ever email your EIN/Exhibitor Tax ID, as email is not a secure system. The submission form is secured and encrypted for your safety and protection.
Any further questions can be asked via email ([email protected]) or on our Facebook Group. However, we must stress checking with the Massachusetts DOR, as they are the ultimate authority on all Tax ID issues.