Maine Provides Exemption Certificate Requirements for Service Provider Tax

Aug 28th, 2019

The Bureau of Revenue Services has recently amended its rule on sales to government agencies and exempt organizations. Before, the rule described exemption certificate and seller documentation requirements for sales and use tax. As of August 19, 2019, the Bureau has extended those requirements to transactions involving service provider tax.

Service providers have the burden of proving a sale to an organization is exempt. Yet, service providers are relieved of this burden if they follow all the requirements of the new rule. For example, the Bureau requires service providers to keep separate invoices of all tax-exempt sales and appropriately mark the invoices. Marking the invoice with the words "Maine Service Provider Tax Exempt" and the applicable exemption number would meet this requirement.

The rule contains a complete list of additional requirements.