Under Maryland’s economic nexus rules in 2024, businesses must adhere to the following key requirements and compliance measures:

Requirements:

1. Economic Nexus Thresholds: Remote sellers must collect and remit sales tax if they exceed $100,000 in gross revenue or 200 separate transactions annually within Maryland.

2. Sales Tax Registration: Businesses meeting these thresholds must register for a Maryland sales tax permit via the Maryland Business Express portal.

3. Tax Collection: Collect the 6% sales tax on all taxable sales made to Maryland customers.

4. Regular Filing: File sales tax returns periodically (monthly, quarterly, or annually) based on the assigned filing frequency.

Compliance Measures:

1. Accurate Reporting: Ensure all taxable sales and collected taxes are accurately reported in sales tax returns.

2. Record-Keeping: Maintain detailed records of all transactions, taxes collected, and exemptions claimed for audit purposes.

3. Monitoring Sales Activity: Continuously track sales volume and transaction counts in Maryland to determine if nexus thresholds are met or exceeded.

4. Timely Remittance: Remit collected sales tax by the designated deadlines to avoid penalties and interest.

5. Stay Informed: Keep up-to-date with any changes in Maryland’s tax laws or nexus thresholds to adjust compliance strategies accordingly.

6. Use Tax Compliance: Address use tax obligations for purchases where Maryland sales tax was not collected, ensuring full tax compliance.

By fulfilling these requirements and implementing robust compliance measures, businesses can effectively manage their sales tax obligations under Maryland’s economic nexus rules, avoiding penalties and ensuring lawful operations within the state.