Rhode Island Tax Nexus

Businesses with nexus in Rhode Island are required to register with the Rhode Island Department of Taxation and to charge, collect, and remit the appropriate tax.

Generally, a business has nexus in Rhode Island when it has a physical presence there, such as a retail store, warehouse, inventory, or the regular presence of traveling salespeople or representatives. However, out-of-state sellers can also establish nexus in the ways described below.

Rhode Island nexus for out-of-state sellers

Click-through nexus

Referrals, including online referrals, from in-state entities can trigger nexus for remote sellers. An out-of-state retailer is considered to have nexus in Rhode Island if it makes sales of tangible personal property or taxable services through an independent contractor or other representative and both the following are true:

  • The retailer enters into an agreement with a resident of Rhode Island, under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by a link on an internet website or otherwise, to the retailer

  • The cumulative gross receipts from sales by the retailer to customers in the state who are referred to the retailer by all residents with this type of an agreement with the retailer exceeds $5,000 during the preceding four quarterly periods

See Rhode Island Sales and Use Tax Laws Section 44-18-15 and the Department of Taxation’s Definition of Sales Tax “Retailer” Amended.