Current through Register 1531, September 27, 2024
(1)
Statement of Purpose;
Effective Date; Outline of Topics.
(a)
Statement of
Purpose. The purpose of
830 CMR
64H.6.11 is to explain the process for
claiming an exemption from the sales tax for purchases of gas, steam,
electricity, or heating fuel taxable under M.G.L. c. 64H and M.G.L. c. 64I by
and for the use of qualifying small businesses under M.G.L. c. 64H, §
6(qq).
830 CMR
64H.6.11 introduces an online Small Business
Exemption (SBE) registration and certificate process, accessible through Mass
Tax Connect, designed to improve processing time and efficiency.
830 CMR
64H.6.11 promulgated on June 2, 2006, is
repealed and replaced as set forth in
830 CMR
64H.6.11(1)(b).
(b)
Effective Date.
830 CMR
64H.6.11 applies to purchases of gas, steam,
electricity, or heating fuel on or after January 1, 2019. The prior version
will continue to apply to purchases made on or before December 31,
2018.
(c)
Outline of
Topics.
830 CMR
64H.6.11 is organized as follows:
1. Statement of Purpose; Effective Date;
Outline of Topics.
2.
Definitions.
3. General
Rule.
4. Gross Income
Requirement.
5. Qualifying
Employees.
6. Registration Process
for and Use of SBE Certificates by Small Businesses.
7. Vendor Obligations and Credits.
8. Misuse of Certificates.
(2)
Definitions. For the purpose of
830 CMR
64H.6.11 the following terms have the
following meanings:
Affiliated Businesses. Two or more
businesses are affiliated when the same owner or the same group of common
owners holds in the aggregate, directly or indirectly, 50% or more of the total
value of the ownership interest or 50% or more of the combined voting power in
each business. The Commissioner will apply the constructive ownership
provisions of Code § 318 for purposes of determining ownership under
830 CMR
64H.6.11, regardless of whether the ownership
is represented by stock shares, partnership interests, or other
indicia of ownership, provided that the constructive ownership
provisions shall apply to siblings in addition to the relationships enumerated
in Code § 318. Affiliated businesses include all members of an affiliated
group as defined by Code § 1504.
Business. Any activity engaged in by
any person or caused to be engaged in by him or her with the object of gain,
benefit, or advantage, whether direct or indirect, that would constitute a
trade or business for federal income tax purposes.
Code. The Internal Revenue Code in
effect for the applicable period.
Commissioner. The Commissioner of
Revenue or the Commissioner's duly authorized representative.
Department. The Massachusetts
Department of Revenue.
Gross Income. The amount properly
reportable as the total amount of income of a business, less any amount
attributable to cost of goods sold.
Qualifying Employee. Any person
performing services for a business for consideration, if the relationship
between the person performing services and the person for whom the person
performs such services is the relationship of employer and employee, as
described in I.R.C. § 3401(c), (d), and Treas. Regs. §§
31.3401(c)-1, 31.3401(d)-1, whether or not the individual is treated as such by
the business, and who meets both of the following criteria:
(a) the person normally works for the
business for 30 hours per week or more; and
(b) the person is hired for a period of five
months or more, or for an indefinite period of time.
Qualifying Employee also includes any
partner, owner, or officer of a business who normally works for the business
for 30 hours per week or more.
Qualifying Small Business. A small
business that meets all of the prerequisites of M.G.L. c. 64H, § 6(qq) and
830 CMR
64H.6.11 for the applicable period, including
compliance with the registration and certificate presentation requirements of
830 CMR
64H.6.11(6).
Seasonal Business. A seasonal business
is a business that operates for periods of less than 12 consecutive months
during the calendar year in the regular course of its business.
Small Business. A business that has
five or fewer qualifying employees and that had gross income of less than
$1,000,000 for the preceding calendar year, and that reasonably expects gross
income of less than $1,000,000 for the current calendar year. All members of an
affiliated business are deemed to be a single business for purposes of the
small business exemption.
Small Business Exemption (SBE). The
exemption from tax available under M.G.L. c. 64H, § 6(qq) for a qualifying
small business.
SBE Certificate. The certificate the
Department issues after a small business registers for the SBE.
Tax. The excise imposed under M.G.L.
c. 64H or M.G.L. c. 64I.
Taxable Energy. Gas, steam,
electricity, or heating fuel which is subject to tax imposed under M.G.L. c.
64H or M.G.L. c. 64I.
Vendor. For purposes of
830 CMR
64H.6.11, a retailer or other person selling
taxable energy.
(3)
General Rule.
(a)
Exemption
Requirements. Gas, steam, electricity and heating fuel are
generally taxable when sold to businesses. However, such taxable energy may be
exempt under M.G.L. c. 64H, § 6(qq) when sold to a small business,
provided that all of the following requirements are met.
1. the business claiming the exemption must
be the purchaser of the taxable energy and the taxable energy purchased must be
solely for the business's own use;
2. the business must have had gross income of
less than $1,000,000 for the preceding calendar year, and must reasonably
expect to have gross income of less than $1,000,000 for the current calendar
year, as further described in
830 CMR
64H.6.11(4);
3. the business must have five or fewer
qualifying employees for the current calendar year, as further described in
830 CMR
64H.6.11(5); and
4. the business must register as a qualifying
small business with the Department using Mass Tax Connect, obtain an SBE
Certificate from the Department, and notify a vendor before the purchase of
taxable energy to which exemption may apply, as further described in
830 CMR
64H.6.11(6). The
registration will generally be valid from the date of registration in a current
year through the end of the next calendar year.
(b)
Effect of
Certificates. The effect of a business registering with the
Department for the small business energy exemption and of the Department's
associated issuance of an SBE certificate and number is as follows:
1.
Vendors. A vendor
will be relieved of the burden of proving that purchases made by a qualifying
small business are exempt and will be presumed to have acted in good faith if
it takes a copy of the small business's current SBE Certificate or by verifying
the small business's current SBE registration with the Department, in
accordance with procedures established by the Commissioner.
2.
Small Business
Purchasers. A small business that registers with the Department
and receives an SBE Certificate is certifying to the Department that it meets
the requirements in
830 CMR
64H.6.11(3)(a)1. through 3.
to use an SBE Certificate when making purchases of energy. Receipt of an SBE
Certificate is not a determination by the Department that the business is in
fact eligible for the exemption. A small business must maintain adequate
employee time and wage records as well as income records to substantiate its
eligibility for the small business exemption. A small business purchaser that
receives an SBE Certificate that does not in fact satisfy the qualifications
for the small business exemption, as described in
830 CMR
64H.6.11(3)(a)1. through 3.,
is liable for use tax on its purchases of energy, notwithstanding its
registration or its receipt of an SBE
Certificate.
(4)
Gross Income
Requirement.
(a)
Determining Gross Income. In determining whether the
business had gross income of less than $1,000,000 for the preceding calendar
year or whether it expects to have gross income of less than $1,000,000 for the
current calendar year (i.e., the year that it is registering
for), the business must examine the particular facts and circumstances at the
time that the business registers with the Department. A business that has
already registered and received an SBE certificate and that later determines
that its actual income for the preceding calendar year was $1,000,000 or more,
or that its actual income for the current calendar year will likely be
$1,000,000 or more, must revoke its registration as detailed in
830 CMR
64H.6.11(6)(d). The business
must also file use tax returns and pay any tax due for any transactions where
no sales tax was collected and the business did not qualify as a small
business.
(b)
No
Retroactivity Where Gross Income for Current Year is Less Than
Expected. A small business that does not reasonably expect to have
gross income of less than $1,000,000, but actually has gross income of less
than $1,000,000 for the current year, cannot retroactively register for the SBE
certificate and seek a credit or refund of sales tax previously paid. Once it
reasonably expects to have gross income of less than $1,000,000, and otherwise
qualifies for the SBE certificate, a small business may register for the SBE
certificate, as provided in
830 CMR
64H.6.11(6).
(c)
Examples. The
provisions of
830 CMR
64H.6.11(4) are illustrated
by the following examples.
Example 1: ABC Jewelry Boutique is a
business that purchases electricity for its own use. It has five or fewer
qualifying employees during calendar year 2019. During calendar year 2018, it
had gross income of $980,000. It expects to have gross income of $990,000
during 2019. ABC would be a small business for purposes of the SBE for calendar
year 2019.
Example 2: Same facts as Example 1,
except that ABC reasonably expects to have $1,500,000 in income for calendar
year 2019. ABC is ineligible to register for an exemption certificate for
calendar year 2019 because it reasonably expects to have gross income in excess
of $1,000,000. If, in August of 2019, it reasonably expects its gross income
for 2019 to be less than $1,000,000, ABC would be a small business for purposes
of the SBE as of August 2019, but may not claim the exemption
retroactively.
Example 3: Same facts as Example 1,
except that in August of 2019 ABC knows that its gross income will exceed
$1,000,000 for calendar year 2019. ABC no longer qualifies as a small business
for calendar year 2019. If ABC registered and received an SBE Certificate for
2019, it must revoke its registration in August of 2019 and notify its
vendors.
Example 4: Same facts as Example 1,
except that after registering and qualifying for the SBE Certificate in
calendar year 2019, in December of 2019 ABC reasonably expects to have
$2,000,000 in gross income for the next calendar year 2020. Although it was a
qualifying small business when it registered in 2019, ABC no longer qualifies
as a small business for calendar year 2020. If ABC registered and received an
SBE Certificate for 2020, it must revoke its registration for 2020 and notify
its vendors.
(5)
Qualifying Employees.
(a)
Presumption of Employee
Status for Partners, Owners, and Officers. A partner, owner, or
officer of any business who regularly works for the business is presumed to be
a qualifying employee of the business. This presumption may be rebutted by the
business upon evidence establishing that such partner, owner, or officer does
not normally work for the business for 30 hours per week or more.
(b)
Determining Employee Status
for Other Workers. In determining whether a person is a qualifying
employee for purposes of the SBE, the Commissioner will examine the particular
facts and circumstances surrounding the relationship between a business and an
individual who works for the business, including, but not limited to, the
following:
1. whether the business pays the
individual a wage or salary;
2.
whether the business is required to withhold income tax from the individual's
compensation;
3. whether the
business is required to pay under the Federal Insurance Contribution Act on
behalf of the individual;
4.
whether the business pays worker's compensation insurance premiums on behalf of
the individual;
5. whether the
business is required to pay under the Federal Unemployment Tax Act on behalf of
the individual;
6. whether the
business considers the individual to be an employee;
7. whether the business exercises or has a
right to exercise control over the means of accomplishing the end result, or
over the end result only;
8. the
general practices of the business with respect to the employment status of
other individuals who work for the business.
A business that has already registered and received an SBE
certificate and that later determines that it does not have five or fewer
qualifying employees, must revoke its registration as detailed in
830 CMR
64H.6.11(6)(d). The business
must also file use tax returns and pay any tax due for any transactions where
no sales tax was collected and the business did not qualify as a small
business.
(c)
Normally Working 30 Hours per Week or More. A person
normally works 30 hours per week or more if, in the calendar year, the number
of hours the person works divided by the number of weeks the person works is
equal to or greater than 30.
(d)
Employment for Five Months or More. A person is hired
by a business for five months or more if the person works for the business for
at least 20 weeks in the calendar year or for 20 weeks during the 12 month
period immediately preceding the claim of the SBE. A person is hired by a
business for fewer than five months only if the person and the business
specifically agree, prior to the employment, that the person will work for the
business for fewer than five months and the person in fact works for the
business for fewer than 20 weeks in the calendar year or fewer than 20 weeks
during the 12 months period immediately preceding the claim of the
SBE.
(e)
Special Rules
for Seasonal Businesses. A seasonal business that does not have
five or fewer qualifying employees at some point during the calendar year may
still be a small business for the purpose of the SBE provided it reasonably
expects that it will have a monthly average of five or fewer qualifying
employees for the current calendar year. A seasonal business may reasonably
expect that it will have a monthly average of five or fewer qualifying
employees if, after applying the following fraction, its total number of
anticipated qualifying employees in the current calendar year is five or fewer:
The numerator of the fraction is comprised of the following: (number of
qualifying employees during operational months times number of operational
months) plus (number of qualifying employees during non-operational months
times number of non-operational months). The denominator of the fraction is 12.
A seasonal business that has already registered and received an
SBE certificate and that later determines that it does not have five or fewer
qualifying employees, must revoke its registration as detailed in
830 CMR
64H.6.11(6)(d). The seasonal
business must also file use tax returns and pay any tax due for any
transactions where no sales tax was collected and the business did not qualify
as a small business.
(f)
Examples. The provisions of
830 CMR
64H.6.11(5) are illustrated
by the following examples.
Example 1: XYZ Corporation is a small
business that employs a number of people to perform weekend security guard
services for various companies. It consists of one full time owner operator who
works 30 or more hours per week. The corporation also employs 15 security
guards who normally work eight hours each day on Saturdays and Sundays. Under
these facts, for the calendar years in question, XYZ Corporation has only one
qualifying employee, since only one individual normally works 30 hours per week
or more. The 15 part-time security guards who work only 16 hours per week are
not qualifying employees. Thus, the business has five or fewer qualifying
employees.
Example 2: Betty's Office Cleaning
Service, Inc. ("Betty's") is a business owned and operated by Betty, who works
30 hours per week for the business. Betty employs a number of people who
provide day and evening office cleaning services to a large office building.
All individuals work according to a fixed regular schedule as follows: Five
individuals work on Mondays, Tuesdays, and Wednesdays from 4:00 P.M. until
11:00 P.M (21 hrs/wk). On Thursdays and Fridays, Betty's uses five different
individuals who work the same shift from 4:00 P.M. to 11:00 P.M (14 hrs/wk).
Under these facts, Betty is the only qualifying employee working for Betty's,
because each of the other employees works less than 30 hours per week.
Example 3: "The Four G's Bakery" is a
local business that operates a neighborhood bakery. It is owned by four sisters
who are equal partners in the business: Greta, Gertrude, Gilda, and Grace.
Greta and Gertrude each work 40 hours per week at the bakery. Gilda does the
bookkeeping for the business at home. Grace, who provided most of the initial
capital for the business, occasionally works at the bakery if one of the other
workers is unable to go to work. In addition to Greta and Gertrude, the bakery
also hired Fanny and Frieda to work 40 hours per week for an indefinite (rather
than temporary) period of time, and Paula and Phyllis, who each work 20 hours
per week.
For purposes of determining if The Four G's Bakery has five or
fewer qualifying employees, Greta, Gertrude, Fanny and Frieda must be counted
as qualifying employees of the business, since a qualifying employee includes
any person, including a partner, owner, or officer of the business who normally
works for the business for 30 hours per week or more. Paula and Phyllis are not
qualifying employees, since neither normally works for the business for 30
hours per week or more. Gilda and Grace normally work for the business,
although their hours vary. Since any partner, owner, or officer of the business
who normally works for the business is presumed to be a qualifying employee,
the business must demonstrate that Gilda and Grace do not work for 30 hours per
week or more. If the business cannot demonstrate that Gilda and Grace normally
work for the business for less than 30 hours per week, the business is presumed
to have six qualifying employees and therefore does not have five or fewer
qualifying employees.
Example 4: Sally's Ski Emporium
("Sally's") is a seasonal ski shop operating on the premises of a ski resort in
Massachusetts. Most calendar years it operates from January through April and
from November through December and is closed from May through October. From
January through April of a given year, Sally's has ten full-time employees and
will have the same employees from November through December. It will have no
employees from May through October. After applying the formula set forth in
830 CMR
64H.6.11(5)(e), (10 x 6) +
(0 x 6)/12= 60/12 = 5, Sally's has a monthly average of five qualifying
employees.
(6)
Registration Process for and Use of SBE Certificates by Small
Businesses.
(a)
Registration Process. To qualify for the SBE, a small
business as defined in
830 CMR
64H.6.11(2) must register
with the Department using Mass Tax Connect and obtain an SBE Certificate with
an SBE Certificate number. The SBE Certificate will be valid for up to two
years as of the registration date through the end of the next calendar year,
provided that the business continues to be a small business. SBE certificates
are valid only as of the date of registration. A small business may not
retroactively register or use an SBE certificate. The same SBE Certificate and
SBE Certificate number may be used for multiple vendors. As of January 1, 2019,
a small business that has not registered and obtained an SBE Certificate will
not qualify for the SBE and will be liable for sales or use tax on purchases of
taxable energy, except as provided in
830 CMR
64H.6.11(6)(g)1. A small
business may register with the Department and obtain an SBE Certificate at any
time after January 1, 2019; however, it will qualify for the SBE only on
purchases made on or after the date of registration with the
Department.
(b)
Use of
SBE Certificates. A qualifying small business must give each
vendor a copy of its SBE Certificate or its SBE Certificate number on or before
its first exempt purchase of taxable energy. The Department may also share the
small business's registration information with any vendors participating in
this program. The SBE Certificate is valid only for purchases made on or after
the registration date shown on the SBE Certificate. If a small business has not
registered with the Department and obtained an SBE Certificate, a vendor must
collect sales tax from such small business on its taxable energy purchases,
except as provided in
830 CMR
64H.6.11(6)(g)1. Once a
qualifying small business presents an SBE Certificate or its SBE Certificate
number to a vendor in a calendar year, it will continue to qualify for the SBE
on subsequent purchases from that vendor until the expiration of the SBE
Certificate, unless the SBE is revoked as detailed in
830 CMR
64H.6.11(6)(d) and
(e).
(c)
Registration
Renewals. A small business must renew its registration with the
Department and update its SBE Certificate on or before the expiration date to
continue to qualify for the SBE. Once a small business renews its registration,
it will obtain an SBE Certificate with a new expiration date that will be valid
for up to another two year period. If the business does not timely renew its
registration and SBE Certificate, it will no longer qualify for the SBE. Any
purchases made after the expiration of the prior year SBE Certificate will be
subject to tax. A small business may re-register with the Department and obtain
a new SBE Certificate at any time; however, such small business will qualify
for the SBE only for purchases made on or after the date of its
re-registration. Upon renewal of its registration with the Department, a small
business must give each vendor a copy of its SBE Certificate or its SBE
Certificate number on or before its first exempt purchase of taxable energy
after the renewal date, in accordance with the rules in
830 CMR
64H.6.11(6)(b).
(d)
Revocation of Registration by
Small Business. A business that is registered with the Department
as a qualifying small business but that ceases to qualify as a small business
as defined in
830 CMR
64H.6.11(2) during either
calendar year must revoke its registration with the Department and notify all
of its vendors. Upon notification, a vendor of taxable energy must begin to
collect tax from any business that has revoked its registration with the
Department. The business is liable for use taxes on any purchases of taxable
energy for which no sales tax was paid during the period in which it did not
qualify. The business must file use tax returns and pay any tax due for any
such taxable transactions in a manner as required by the
Commissioner.
(e)
Revocation by the Commissioner. Notwithstanding the
foregoing, the Commissioner may deny or revoke the SBE registration and SBE
Certificate if the Commissioner determines that a business does not qualify for
the SBE or the small business is using the SBE Certificate to evade any tax due
and assess the business any amount of use tax due to the Commonwealth, or any
portion thereof, which the Commissioner believes has not been assessed, in
accordance with M.G.L c. 62C. The business is liable for use taxes on any
purchases of taxable energy for which no sales tax was paid during the period
in which it did not qualify for the SBE or an SBE certificate was used to evade
remittance of the proper tax due. The Commissioner may also notify any known
vendors to begin collecting sales tax from such business.
(f)
Notice to
Vendors. Any business that has revoked its SBE registration or
that has had its SBE registration revoked by the Commissioner, or whose
registration has otherwise expired, shall notify all of its taxable energy
vendors that its SBE Certificate is no longer valid.
(g)
Transition Rules for 2018 and
2019. All small businesses may register with the Department and
obtain an SBE Certificate at any time as of January 1, 2019.
1.
Existing Exemption
Certificates. A small business may use a valid, previously-issued
Form ST-13 that has been provided to a vendor to claim the small business
exemption for purchases of taxable fuel made through March 31, 2019, or such
later date as the Commissioner may subsequently specify. A small business may
no longer use Form ST-13 to claim the SBE for purchases of taxable fuel made
after March 31, 2019. A small business must register with the Department and
obtain a new SBE Certificate on or before March 31, 2019, to continue to
qualify for the SBE on purchases of taxable energy made after that date. After
March 31, 2019, all previously issued exemption certificates on Form ST-13 will
no longer be valid for purposes of claiming the SBE.
2.
New SBE
Certificates. As of January 1, 2019, a small business that did not
use an exemption certificate on Form ST-13 for transactions in 2018 must
register with the Department and obtain an SBE Certificate, as detailed in
830 CMR
64H.6.11(6), to qualify for
the SBE on purchases of taxable energy. A business may register with the
Department and obtain an SBE Certificate at any time after January 1, 2019, as
long as it otherwise qualifies as a small business as defined in
830 CMR
64H.6.11(2); however, it
will only qualify for the SBE on purchases made on or after the date of the
registration with the Department.
3.
Deadline for
Registration. A small business must register with the Department
and obtain a new SBE Certificate on or before March 31, 2019, to continue to
qualify for the SBE on purchases of taxable energy made after that date. After
March 31, 2019, a small business that has not registered with the Department
and has not obtained an SBE Certificate, will not qualify for the SBE until
such time as the small business registers with the Department. A small business
may register with the Department and obtain an SBE Certificate at any time
after March 31, 2019; however, it will qualify for the SBE only for purchases
made on or after the date of registration with the Department. A vendor of
taxable energy must collect sales tax on any purchases made without a current
SBE Certificate.
(7)
Vendor Obligations and
Credits.
(a)
Verification Requirements. Before allowing an SBE, a
vendor must verify that a small business purchaser is registered as a
qualifying small business with the Department. Also, upon expiration or
revocation of an SBE certificate and SBE registration, a vendor must verify
that the small business purchaser has renewed its registration with the
Department. A vendor may verify this information either by obtaining a copy of
the small business's current SBE Certificate or by verifying the small
business's current SBE registration with the Department, in accordance with
procedures established by the Commissioner. Verification by either of these
methods shall create a presumption of good faith on the part of the vendor
under M.G.L. c. 64H, § 6(qq) and the vendor will be relieved of the burden
of proving that purchases made by the small business are exempt.
(b)
Recordkeeping
Requirements. A vendor shall retain records relating to the
verification process in
830 CMR
64H.6.11(7)(a) and make
available such records to the Commissioner no later than 60 days from the date
of a notice from the Commissioner to produce such records. A vendor's records
must include the name of the qualifying small business purchaser and its SBE
Certificate number, along with any other records required by
830 CMR
62C.25.1: Record
Retention.
(c)
Annual Report. A vendor will provide the Department
with an annual report of its exempt sales to qualifying small businesses and
any credits claimed under
830 CMR
64H.6.11(7)(d) in a manner
prescribed by the Commissioner. In general, the report shall identify the total
dollar amount of exempt purchases made by each purchaser claiming the SBE
during the calendar year, including detailed information on any credits claimed
for prior transactions.
(d)
Credits. A vendor that collected sales tax from a
small business that purchased taxable energy, which should have been exempt
because the small business had a valid SBE registration and SBE Certificate,
may claim an offset on the vendor's next monthly sales tax return in accordance
with procedures established by the Commissioner. A vendor must refund the
previously collected sales tax to the qualifying small business to claim the
credit. Any credit claimed under this provision must be within the statute of
limitations provided in M.G.L. c. 62C, §§ 36, 37, and any credit
claimed after such time limits will not be allowed. A vendor that uses the
offset process in
830 CMR
64H.6.11(7)(d), waives its
right to receive any interest on the offset amounts under M.G.L. c. 62C, §
40.
(e)
Amended
Returns. In lieu of the credit process in
830 CMR
64H.6.11(7)(d), a vendor may
submit an amended return as provided by
830 CMR 62C.26.2:
Amended Returns, after refunding any previously collected
sales tax to the qualifying small business. Any amended return filed under
830 CMR
64H.6.11(7)(e) must be
filed within the statute of limitations provided in M.G.L. c. 62C, §§
26, 36 and 37. A vendor may not offset an amount under
830 CMR
64H.6.11(7)(d) and submit
an amended return under
830 CMR
64H.6.11(7)(e) for sales
tax related to the same transaction.
(f)
Transition Rules for 2018 and
2019 For Existing Exemption Certificates. As noted in
830 CMR
64H.6.11(6)(g)(1), a small
business may use a valid, previously-issued Form ST-13 to claim a small
business exemption for purchases of taxable fuel made prior to March 31, 2019.
A vendor may accept a valid Form ST-13, and will not be subject to the
verification requirements in
830 CMR
64H.6.11(7)(a) for such
purchases. A vendor may claim an offset on its next monthly sales tax return in
accordance with the provisions in
830 CMR
64H.6.11(7)(d) for
purchases made using Form ST-13 within three years from March 31, 2019.
Purchases made using Form ST-13 must be included in the vendor's annual report
required by
830 CMR
64H.6.11(7)(c).
(g)
Invalid
Registration. A vendor must collect sales tax from a business that
does not have a current registration and SBE certificate. A vendor that is
notified, either by a taxpayer or by the Department, that a business's SBE has
been revoked must begin collecting sales tax. A vendor may not receive a vendor
credit or refund from the Commissioner for any amount that the vendor has
refunded to a purchaser on purchases made without a current registration or
made after the vendor received notice that the registration was
revoked.
(8)
Misuse of Certificates. Any person who willfully
presents any certificate under M.G.L. c. 64H or M.G.L. 64I known by that person
to be fraudulent or false as to any material matter and given for the purpose
of evading payment of sales or use tax may be subject to fines, imprisonment,
or both. Any person who willfully aids or assists in the preparation of
presentation of such a fraudulent or false document may be subject to fines,
imprisonment, or both. If any purchaser of taxable energy improperly presents a
certificate, the purchaser remains fully liable for payment of use tax on its
purchase.
