Exhibitor Tax IDs
Please read all of the information below, as it is extremely IMPORTANT.
Anime Boston is required to collect a Massachusetts Sales Tax ID from any exhibitors at the convention and submit it to the Massachusetts Department of Revenue (DOR). This means that all Anime Boston Exhibitors, both those in the Artists' Alley and the Dealers' Room, need to register with the Massachusetts DOR and collect sales tax on the products they sell.
A Massachusetts DOR Tax ID is required for participation in both the Dealers' Room and the Artists' Alley and must be submitted every single year an exhibitor participates. There are absolutely no exceptions.
If you do not already have a valid Massachusetts DOR Tax ID, the best way to obtain one is to generate an Employer Identification Number (EIN) with the United States Internal Revenue Service (IRS) and then register it with the Massachusetts DOR as your Tax ID. This process is free, and can be completed online in a short period of time.
First, generate an EIN with the IRS:
After you have received your EIN from the IRS, register it with the Massachusetts DOR:
Complete EIN Registration instructions can be found on Massachusetts DOR website. Choose "Register" under the "Register Online" section of "Getting Started in Massachusetts". At the end of the process, you will see a screen that can serve as proof of your registration. It is advised to keep a copy of it for your records, whether a printout, screencap, .pdf, etc. This is a permanent registration and does not have to be renewed each year, unless it is canceled.
If you do not register with the Massachusetts DOR to collect sales tax, you will not be allowed to participate as an Exhibitor at Anime Boston.
The Massachusetts DOR Tax ID will be collected by Anime Boston via an online form for all Exhibitors prior to the convention.
Clarifications and Examples
To clarify who must submit a Massachusetts DOR Tax ID, here are three common examples for Exhibitors:
It is the responsibility of the artist or dealer purchasing the space at Anime Boston to make sure that all applicable people using said space follow the proper procedures with Massachusetts DOR Tax ID submissions to Anime Boston. If any of the exhibitors have been found NOT to have followed procedure, they will be denied space. This includes ejecting them from the space during the convention. Anime Boston must have every exhibitors' Massachusetts DOR Tax ID prior to the start of the convention.
Current Sales Tax and Exemptions
The current sales tax in Massachusetts is 6.25% of the item's cost. Some items and services are also exempt from the sales tax:
For example, individual clothing items priced under $175 are exempt from sales tax. Any clothing item priced over $175 requires sales tax to be paid only on the difference. So, if a dealer sold a $200 dress, only the difference of $25 would be applicable to Massachusetts sales tax. The total would be:
$200 + (6.25% of $25) = $200 + $1.56 = $201.56
However, even if a dealer or artist is selling only products that would be exempt from sales tax, he or she is still required to submit a Massachusetts DOR Tax ID. This is essentially to inform the state that the products sold were below the tax threshold.
How to Handle the Sales Tax When Pricing and Selling
When dealing with charging the sales tax to a customer, there are two basic ways to proceed:
As always, consult with a tax professional for answers to questions. The Massachusetts DOR is also very helpful over the phone.
Submit Your Massachusetts DOR Tax ID
Please submit your Massachusetts DOR Tax ID (EIN) to Anime Boston here:
Please refer to the above Clarifications and Examples section to determine who in your party is required to submit one.
Any further questions can be posted to our forums, or asked to the Director of Exhibits. However, we must stress checking with the Massachusetts DOR, as they are the ultimate authority on all Tax ID issues.