A physical nexus in Maine is established when a business has a tangible presence in the state. This includes:

• Owning or Leasing Property: Offices, warehouses, stores, or any real estate.

• Employing Personnel: Having employees or agents working in Maine.

• Maintaining Inventory: Storing goods in Maine for sale.

• Participating in Trade Shows: Regularly attending trade events within the state.

When a business has a physical nexus, it is required to:

• Register for a Maine Sales Tax Permit: Obtain the necessary authorization to collect sales tax.

• Collect Sales Tax: Charge the appropriate sales tax on taxable sales to Maine customers.

• Remit Collected Tax: Submit the collected sales tax to Maine Revenue Services by the required deadlines.

• Comply with Filing Requirements: File sales tax returns regularly based on the business's filing frequency.

Physical nexus imposes comprehensive sales tax responsibilities, ensuring that businesses with a significant presence in Maine contribute to the state's tax revenue through the collection and remittance of sales taxes on their sales.