Table of Contents
- Introduction
- Nexus Considerations
- General Rules and Compliance Considerations
- Registration, Collection, and Sourcing Rules
- Collection, Rates, and Remittance
- Pitfalls and Risks
- International Sellers
- Audit Considerations
- Voluntary Disclosure Agreements (VDAs)
- Conclusion
- References & Resources
1. Introduction
Purpose of This Guide
For online sellers, DTC brands, marketplace sellers, and eCommerce businesses operating in Maryland, the state's sales and use tax rules present unique challenges and opportunities. Whether you're selling on Amazon, eBay, Shopify, or your own website, understanding Maryland's sales tax obligations is critical for maintaining compliance and avoiding costly penalties.
This guide is specifically designed for online sellers who need to navigate Maryland's sales tax requirements. Economic nexus rules help you understand when online sales trigger Maryland sales tax obligations, while marketplace facilitator laws explain how platforms like Amazon handle tax collection on your behalf. Physical presence nexus clarifies how inventory storage and fulfillment centers create tax obligations, and registration and filing provides step-by-step guidance for compliance with Maryland requirements. International seller obligations address special considerations for foreign businesses selling to Maryland customers.
Why This Matters for Online Sellers
Maryland's sales tax laws significantly impact eCommerce businesses in several ways. Economic nexus became effective October 1, 2018, requiring remote sellers to register to collect tax in Maryland if they exceed the state's economic nexus threshold of $100,000 in sales or 200 transactions during the previous or current calendar year. Inventory nexus means Amazon FBA sellers are exposed to physical nexus in Maryland because their FBA inventory creates nexus regardless of whether the company crosses the economic thresholds.
Marketplace facilitator relief came through Maryland's marketplace facilitator law, effective October 1, 2019, which requires platforms that facilitate sales to collect Maryland sales tax on behalf of sellers. Criminal liability remains a serious concern, as failure to properly collect and remit sales tax can result in criminal penalties and personal liability for business owners.
Understanding these rules is essential because Maryland's 6% state rate makes compliance manageable, but the state aggressively enforces its tax laws through audits and criminal prosecutions for businesses that fail to comply with their obligations. For more information, visit the Maryland Comptroller Sales and Use Tax page.
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