The Massachusetts sales tax rate is 6.25%. While this tax applies to most transactions, some items are exempt for all consumers, not just tax-exempt purchasers. Examples of exemptions include most food and grocery products (not restaurant food), some health and sanitation items, periodicals, clothes costing less than $175, and prescribed medical devices.
If your customer qualifies for a sales tax exemption, obtain a valid certificate from them. Keep this on file as you may need to provide it if audited. If you lose an exemption certificate, contact the customer to request a replacement copy.
On making an exempt purchase, certificate holders may submit a completed Massachusetts Sales Tax Exemption Form to the vendor instead of paying sales tax.
Returns for use tax in Massachusetts are due on or before the 20th day of the month following purchases. For example, January purchases must be reported by February 20.