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Important Sales Tax Changes in Massachusetts

March 11, 2021

MA taxpayers, you will want to read up on important changes to sales tax effective April 2021.

Massachusetts taxpayers…did you have more than $2.4 million in taxable MA sales during 2020? You have new requirements to follow. Here, we dive into this and other key provisions in the MA FY21 budget.

What are the key provisions in MA’s FY21 Budget?

The $45.9 billion budget includes a number of significant tax provisions. This includes a couple of important sales tax changes.

Accelerated sales tax remittance- All sales tax filers who remitted $150,000 or more of MA sales taxes during 2020 OR any taxpayer that had more than $2.4 million of taxable MA sales during 2020 are now required to make two sales tax payments for each month.

Payments are now due by the 25th of the month for the tax due on sales through the 21st of that month. When the return is filed in the next month, the balance of tax due on the sales from the 22nd through the end of month must be paid. Prior to this change, only one payment was made for the entire month when the sales tax return was filed.

Those affected by this change need to make their first accelerated tax payment by April 25, 2021.

Sales tax and room occupancy change- Another key provision requires sales tax filers to revise the due date of sales tax and room occupancy excise returns from the 20th of the month following the reporting period to the 30th of the month. This impacts all sales tax returns, not just those who remitted more than $150,000 of tax in 2020. The change is also effective April 1, 2021 and returns filed for April 2021 will now be due May 30, 2021 rather than May 20, 2021.

Questions on these changes? Please reach out to us.

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