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R. Klein, EA
R. Klein, EA, Enrolled Agent
Category: Tax
Satisfied Customers: 3374
Experience:  Over 20 Years experience
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I just opened a small business where in Rhode Island it is

Customer Question

I just opened a small business where in Rhode Island it is now a taxable service. When billing a customer do I need to include a sales tax, vat tax, and service tax. If so where can I find out the vat tax and service rate for my state?
Submitted: 4 years ago.
Category: Tax
Expert:  R. Klein, EA replied 4 years ago.

Randalltax :

I see you have a question about sales tax.

Sounds like you are from outside the US originally.

Randalltax :

There is no VAT (Value-added tax) in the United States.

Randalltax :

The only tax that applies is a local and/or state sales tax. It is always added to the gross sale amount.

In most cases, you only collect the sales tax for sales to someone in the state you are in, in this case, a consumer who is in Rhode Island.

Randalltax :

If your business has a physical location in another state, you may need to collect sales tax for that location separately.

Randalltax :

All information about the RI sales tax can be found here: http://www.tax.ri.gov/regulations/salestax/

Randalltax :

I hope this answers your question about the RI tax. I f you need any followup or clarification, feel free to ask before you rate the answer. Thanks!