Massachusetts Sales/Use Tax – Doing Business With a Non Resident Contractor

Massachusetts residents/businesses dealing with a non resident contractor are required to obtain a certificate of compliance from that contractor when the performance of that contract is in the Commonwealth of Massachusetts. If the Massachusetts resident/business has not obtained a copy of this certificate, they are personally liable for the payment of sales/use tax.  If materials are not broken out on the invoice, the tax will be assessed on the entire contract. 

All non-resident contractors are required to deposit 5% of the contract price or furnish a guarantee bond equal to 5% of the project cost of tangible personal property used in the job with the commissioner.  Upon the deposit or posting of the bond, the commissioner will issue a certificate verifying that the non-resident is in compliance with all requirements. 

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