STATE OF RHODE ISLAND  
                                                     DEPARTMENT OF REVENUE 
                                                     DIVISION OF TAXATION 
                                                                             
                                     INSTRUCTIONS FOR PREPARING SALES & USE TAX RETURN
                    Gross Sales and Exemptions 
                                                                                                           Use Tax Worksheet
LINE 1:  Gross Sales. Include GROSS sales for the specific period.           1. Total sale price of purchases subject to the use tax
                                
                              Exemptions:                                    2. Total sale price from additional schedules (if needed)
                                                                             3. Total sale price of all purchases subject to the use tax.  
LINE 2a: Resale.  Enter total sales made during the period for which              Add lines 1 and 2
         resale certificates have been accepted.                             4. Amount of tax. Multiply total sale price of purchases from line 3 
                                                                                 by 7% (0.0700)
                                                                             5. Credit for sales or use taxes paid on these purchases in other  
LINE 2b: Interstate sales.   Enter the total amount of sales made to out         states
         of state customers, where delivery was provided by seller out-      6. TAX DUE ON PURCHASES. Subtract line 5 from line 4
         side of Rhode Island. 
                                                                              
LINE 2c: Non-taxable Sales and Services.  Enter the total amount of          A listing of all purchases should be kept in accordance with Regulation 
         non-taxable sales or services; such as motor vehicle sales, pre-    280-RICR-20-70-25. 
         scription drug sales, fuels, coffins, caskets, urns, breast pump     
         collection and storage supplies.                                    Motor Vehicle Dealers Only: The amount listed should include all Sales 
                                                                             Tax collected on motor vehicle sales from residents of non-reciprocal 
LINE 2d: Exempt Organizations.  Enter the total amount of sales to           states only. 
         exempt organizations for which exemption certificates have           
         been accepted.                                                      The following are non-reciprocal states: 
                                                                              
LINE 2e: Other. If you have a deduction that does not have its own line,               • Arizona           • Indiana 
         enter the amount on line 2e and provide a description of the                  • California        • Massachusetts 
         deduction.                                                                    • Florida           • Michigan 
                                                                                       • Hawaii 
         Motor Vehicle Dealers Only: On the specification line you            
         must write “MV Sale” (motor vehicle sales). The amount listed       LINE 7:   Total Sales Tax and Use Tax Due.  Add lines 5 and 6 enter the 
         should include all in state and out of state motor vehicle sales.             total on this line. 
                                                                              
         Alcoholic Class A Liquor License Only: On the specification         LINE 8a: Prepaid Sales Tax on Cigarettes (Licensed Cigarette 
         line you must write “WSE” (wine – spirits exemption). The                     Dealers Only).  Enter the amount of prepaid sales tax on ciga-
         amount listed should include wine and spirits sales only.                     rettes purchased during the period. 
                                                                              
         Writers, Composers and Artists: On the specification line you       LINE 8b: Other.  If you have a credit that does not have its own line, 
         must write “AWE” (artwork exemption) and the count of pieces                  enter the amount on line 8b and provide a description of the 
         sold. The amount listed should include exempted artwork                       credit. 
         deductions only.                                                     
                                                                                       Examples of allowable credits are room resellers, sales tax paid 
LINE 3:  Total Deductions.   Add lines 2a through 2e and enter the                      to hotels and the amount of tax retained by an approved TIF 
         amount on this line.                                                          entity. 
                                                                              
LINE 4:  Taxable Sales. Subtract line 3 from line 1.                         LINE 9:   Total Credits.  Add lines 8a and 8b and enter the total on this 
                                                                                       line. 
                        Credits and Tax Due                                   
                                                                             LINE 10: Sales Tax Due.  Subtract line 9 from line 7 and enter the total 
LINE 5:  Trust Fund Sales Tax Due and Required to be Remitted.                         on this line. 
         Multiply line 4 times 7% (0.07) and enter the amount on this         
         line.                                                               CERTIFICATION SECTION: This return must be completed and signed 
                                                                             by an authorized owner, partner or officer. 
         A deduction is not allowed on any item or service when tax is        
         collected from the consumer. When the tax collected for the         All forms can be found on the Division of Taxation’s website: 
         period exceeds the amount calculated, the collected amount          https://tax.ri.gov/forms/business-tax-forms/sales-excise-forms        
         must be remitted.                                                    
                                                                             Mail your completed form to: 
LINE 6:  Use Tax Due.  Use the table in the next column to determine                   RI Division of Taxation 
         the amount of Use Tax Due.  Enter the cost of tangible personal               One Capitol Hill 
         property purchased outside of Rhode Island tax free for use,                  Providence, RI 02908 
         storage or consumption by you in this state or the cost of tangi-             Attn: Tax Processing  
         ble personal property purchased for resale and subsequently          
         used or consumed by you during the period rather than being          
         sold.  Also, include on this line the amount of any other transac-  NOTE:    You may be required to file and pay sales tax electronically.  
         tions during this period subject to the sales and use tax pur-                For more information refer to Advisory 2022-23 under Guidance 
         chased without payment of the tax.                                            on the Division of Taxation’s website -  
                                                                                       https://tax.ri.gov/guidance/advisories
          Attention filers, you can file this form online using the RI Division of Taxation’s portal! 
                                Visit:  https://taxportal.ri.gov for more information.