Before you begin

Confirm you need to register

Before completing a sales and use tax registration application in the state of Massachusetts, confirm that your business meets the requirements to register for a sales tax licence (also known as a Sales and Use Tax Registration Certificate).

Who should register?

• Retailers located in the state of Massachusetts who engage in sales of tangible goods, services, or marketplace-facilitated sales.
  
• Remote sellers (i.e., businesses located outside of Massachusetts making sales or providing services with final destination into Massachusetts) that meet the sales threshold.
  
  • Threshold: $100,000 in gross sales
    
  • Period: Previous year
    

Gather information

Next, view the Mass.gov checklist to make sure you have all required information readily available, as this will help simplify the online application process.

Start the registration process

1. Navigate to the MassTaxConnect website.
   
   • Under “Quick links,” select “Register a new taxpayer” and then “Register a business” under “Registration options.”
     
   • Select “Next” after reviewing the requirements information.
     
   • Select “I am registering a business” as the reason for registration.
     
2. Complete the “Organization information” and “Legal business information” sections for your business. Select “Next.”
   
3. Enter the business’s legal address and postal address. Verify the address(es) before proceeding.
   
4. Enter your business’s banking information to enable electronic tax payments. Select “Next.”
   
5. Select the applicable tax types you are registering for your business. Select “Next.”
   
6. Using the keyword search, select the North American Industry Classification System (NAICS) code that best fits the business description.
   
7. Complete the owner/officer fields with the responsible person’s information, selecting “+Add another owner/officer” if more than one responsible party exists.
   
8. Complete the location address section by adding all business locations.
   
   • Note: The date you enter on this page will be the date the state expects you to start collecting sales tax from your customers in Massachusetts. We recommend speaking with a CPA if you are unsure of which date to use for your business.
     
9. Complete the sales tax registration page using the date you are required to start collecting tax in Massachusetts to determine the first return period due.
   
   • Answer the remaining questions on the page.
     
   • Note: To estimate annual sales tax, multiply the business’s prior year gross sales by 6.25%.
     
10. Using the primary responsible person’s information, complete the MassTaxConnect online profile.
    
    • Create a four-digit PIN for your business, and store this information in a secure location for future reference.
      
11. Create a username, password, and secret question and answer for the online account, and store this information in a secure location for future reference.
    
12. If you’re managing multiple clients through this account, select the box to access “Manage my clients.”
    
13. Agree to the terms of use, and review and submit the application. The state will typically notify you by email within one to two business days once the application has been processed and approved.
    

What’s next?

Enable sales tax calculations for Massachusetts on Stripe Tax

Once you have received your sales tax permit from the state, the next step is to enable sales tax calculations in Stripe Tax for Massachusetts, as the state will expect you to start collecting sales tax from your customers in Massachusetts based on the collection start date you used on your sales tax registration form.

You can read these instructions on how to add your Massachusetts registration to your Stripe Dashboard. For more information on enabling Stripe Tax, you can find full setup instructions.

Sales and use tax online filing and payments

Next, you’ll want to prepare to file your first sales tax return in Massachusetts based on the filing frequency the state assigned you.

If you’d prefer to have a trusted partner file these returns for you, we recommend using TaxJar’s AutoFile solution. Click here to sign up and see more information.

How Stripe can help

Stripe Tax reduces the complexity of global tax compliance so you can focus on growing your business. It automatically calculates and collects sales tax, VAT, and GST on both physical and digital goods and services in all US states and more than 100 countries. Stripe Tax is natively built into Stripe, so you can get started faster – no third-party integration or plug-ins are required.

Stripe Tax can help you:

• Understand where to register and collect taxes: See where you need to collect taxes based on your Stripe transactions and, after you register, switch on tax collection in a new state or country in seconds. You can start collecting taxes by adding one line of code to your existing Stripe integration; or add tax collection to Stripe’s no-code products, such as Invoicing, with the click of a button.
  
• Register to pay tax: Stripe Tax provides links to the websites where you can register once you reach the threshold to register.
  
• Automatically collect taxes: Stripe Tax always calculates and collects the correct amount of tax, no matter what or where you sell. It supports hundreds of products and services, and constantly monitors and updates tax rules and rates.
  
• Simplify filing and remitting: With our trusted global partners, users benefit from a seamless experience that connects to your Stripe transaction data – letting our partners manage your filings so you can focus on growing your business.
  

Find more information about Stripe Tax.