Online sellers in Maryland must adhere to specific sales tax collection and reporting requirements to ensure compliance:

1. Economic Nexus Thresholds: Sales Threshold: Register and collect sales tax if gross sales exceed $100,000 or if there are 200 or more separate transactions annually in Maryland.

2. Registration: Obtain a sales tax permit by registering with the Maryland Comptroller’s office through the Maryland Business Express portal if thresholds are met.

3. Tax Collection: Collect the applicable 6% sales tax on taxable goods and services sold to Maryland customers.

4. Remittance: Remit the collected sales tax to the Comptroller’s office by the assigned deadlines (monthly, quarterly, or annually based on sales volume).

5. Filing Sales Tax Returns: File periodic sales tax returns detailing the amount of tax collected from Maryland customers through the Comptroller’s bFile system.

6. Exemptions: Apply sales tax exemptions correctly for eligible goods or services, maintaining documentation to support exempt sales.

7. Marketplace Facilitators: If selling through platforms like Amazon or eBay, understand that these marketplace facilitators are responsible for collecting and remitting sales tax on behalf of sellers for sales made through their platforms.

8. Record-Keeping: Maintain accurate records of all sales transactions, taxes collected, and exemptions applied for compliance and audit purposes.

9. Compliance with Changes: Stay updated on any changes in Maryland’s sales tax laws, rates, or thresholds to ensure ongoing compliance.

10. Use Tax Obligations: If a business makes sales without collecting sales tax, it may be liable for use tax, requiring proper reporting and payment.

By following these requirements, online sellers can effectively manage sales tax obligations in Maryland, avoiding penalties and ensuring compliance with state tax laws.