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Taxes Owed on Purchases Made Abroad

Did you know…

Close-up of a passport with cash, boarding pass and travel book

If you are fortunate enough to travel abroad, it is important to remember you will owe use tax on items purchased out of the country that would normally be subject to Rhode Island’s 7% sales tax. The tax applies to the sales price and any service related to the sale, such as maintenance or delivery fees. Whether you pay another country’s sales tax, you must still report and pay RI’s sales tax on your personal tax return or on Form RIT-205 “Consumer’s Use Tax Return” which can be accessed on-line at: Reporting and paying sales tax on your personal tax return applies to both Massachusetts and Connecticut, as well. Rhode Island, like many other states, receives information from the U.S. Department of Homeland Security on items purchased by consumers in other countries.

For questions or more information, please contact a Sansiveri tax professional at 401-331-0500.