In this article
If you’re selling digital services and products to customers in Massachusetts, then you might be liable for Massachusetts’s sales tax. We’ve compiled over 10 years of experience in tax compliance to create this comprehensive guide, which covers how to file sales tax returns online and stay compliant with the state's regulations.
We’ve scoured the Massachusetts Department of Revenue (DOR) website to provide you with all the necessary information about sales tax for businesses in one convenient place.
How to file sales tax returns in Massachusetts
Sales and taxes should be reported and filed using US dollars. If you’ve made any transactions in Massachusetts in a different currency, be sure to convert those to USD using official currency exchange rates.
When to file and pay
The DOR will assign you a filing frequency (monthly, quarterly, or yearly) after you register your business. Typically, this is determined by the size or sales volume of your business. State governments generally ask larger businesses to file more frequently.
Massachusetts sales tax returns and payments must be remitted at the same time; both have the same due date. The Massachusetts DOR requires all sales tax filing to be completed by the 20th of the month following the end of the filing period. Due dates falling on a weekend or holiday are adjusted to the following business day.
MA sales tax filing deadlines
Monthly filing due dates
Reports are due on the 20th of the month following the reporting month. For example, the April sales tax report is due May 20.
| Month | Filing Deadline |
|---|---|
| January | February 20 |
| February | March 20 |
| March | April 20 |
| April | May 20 |
| May | June 20 |
| June | July 20 |
| July | August 20 |
| August | September 20 |
| September | October 20 |
| October | November 20 |
| November | December 20 |
| December | January 20 |
Quarterly filing due dates
Reports are due on the 20th of the month following the reporting period.
- April 20, for first quarter ending March 31
- July 20, for second quarter ending June 30
- October 20, for third quarter ending September 30
- January 20, for fourth quarter ending December 31
| Quarter | Filing Deadline |
|---|---|
| Q1 (January 1–March 31) | April 20 |
| Q2 (April 1–June 30) | July 20 |
| Q3 (July 1–September 30) | October 20 |
| Q4 (October 1–December 31) | January 20 |
Yearly filing due dates
Reports for the previous year are due on January 20.
Important Note: Zero Returns
Once you have a Massachusetts seller's permit, you’re required to file returns at the completion of each assigned collection period regardless of whether any sales tax was collected. When no sales tax was collected, you must file a "zero return” electronically.
How to prepare your Massachusetts sales tax return
Before you start working on your sales tax return, you'll need to collect all the sales information for your tax period. The DOR online tax return system will guide you, but generally, you'll need the following information.
Sales transactions
Every business needs to know how much it sold—both in gross sales and in taxable sales—and to whom the business sold it. You are also required to collect and pay sales tax for any personal property sold to residents of Massachusetts, with certain exceptions (e.g., if the buyer has a resale certificate or the item isn't considered taxable).
In addition to your gross Massachusetts sales (total sales revenue from buyers in Massachusetts, regardless of taxability), filing a sales tax return requires the following information:
- Total sales and income
- Total purchases and expenses
- Taxable sales by type: Different types of products are subject to different tax rules and amounts.
- Non-taxable sales by type: Examples include sales to resellers, non-taxable labor, and certain non-taxable foods.
- Deductions: This might include items such as delivery charges.
- Total collected sales tax: The total amount of sales tax you collected from customers during the filing period.
How to complete and file a Massachusetts sales tax return
The final step is to file and remit tax. The DOR has an online filing system where you can enter your information to generate the return.
You can file online in MassTaxConnect. Just follow these steps:
- Log in to MassTaxConnect.
- From the Summary tab, locate the Account box for the tax you are filing.
- The most recent return period due will be shown on the right; select File Now if that is the period you want to file. For all other periods, select the Returns link in the Account box.
- Select the Period hyperlink for the period you are filing.
- Select the File or amend a return or File now hyperlink.
- Fill in all required fields.
- Be sure to actually click Submit when you’re done!
You’ll immediately see a confirmation number. This number serves as a record of filing the tax return. You’ll receive a confirmation email, as well.
How to pay
Tax payments must be made using US dollars. You can pay directly in MassTaxConnect at the end of the tax declaration process, after you file your return. The portal accepts EFT payments taken directly from your bank account. Or for a convenience fee of 2.35%, you can pay with a credit/debit card:
- Visa
- MasterCard
- Discover credit and debit cards.
Late filing penalties and interest
Hopefully, you won't need to worry about this section because you're filing and remitting Massachusetts sales tax on time. However, in the real world, mistakes happen.
If you miss a sales tax filing deadline, file your return as soon as possible. Failure to file returns and remit collected tax on time may result in penalties and interest charges, and the longer you wait to file, the greater the penalty and the greater the interest.
The Massachusetts DOR does not currently offer a timely filing discount for sales tax filers. For more accurate details pertaining to interest, penalties, and fees associated with the charges, refer to the Massachusetts DOR website.
If you miss a Massachusetts sales tax filing deadline due to unavoidable circumstances like weather or an accident, the Massachusetts DOR may grant you an extension. However, you may be asked to provide evidence supporting your claim. Furthermore, if you are considering buying a business, it's crucial to contact the Massachusetts DOR beforehand to check its sales and use tax standing. You will be responsible for any existing tax debts after the purchase is complete.
Getting third-party help with sales tax filing
While you can file directly with the DOR, manual filing can be difficult, especially for larger businesses with many transactions across different districts. Outsourcing to experts like accountants, bookkeepers, or sales tax automation companies is common. They understand Massachusetts sales tax law and can help you navigate its complexities.
**Quaderno **offers a service to simplify your sales tax compliance. Besides generating detailed tax reports with all necessary data, Quaderno can handle the filing process for you. By connecting to your sales data, Quaderno manages the submission of your sales tax returns to the DOR, ensuring timely and accurate filing. This saves time and provides peace of mind.
For further reading that will help you stay compliant and successful as a remote seller, check out our Guide to Sales Tax in Massachusetts.
Sales tax filing in other states
- Arizona Sales Tax Filing Guide
- Colorado Sales Tax Filing Guide
- Florida Sales Tax Filing Guide
- Georgia Sales Tax Filing Guide
- Illinois Sales Tax Filing Guide
- Massachusetts Sales Tax Filing Guide
- New Jersey Sales Tax Filing Guide
- New York Sales Tax Filing Guide
- North Carolina Sales Tax Filing Guide
- Pennsylvania Sales Tax Filing Guide
- Texas Sales Tax Filing Guide
- Virginia Sales Tax Filing Guide
- Washington Sales Tax Filing Guide
Note: At Quaderno we love providing helpful information and best practices about taxes, but we are not certified tax advisors. For further help, or if you are ever in doubt, please consult a professional tax advisor or the tax authorities.
