Maryland’s New Sales Tax Law: Navigating MPU Exemptions and Compliance Challenges

• Maryland Legislature passed a bill expanding the sales tax base to include data, IT, and cloud services at a 3% rate, effective July 1, 2025.
• The Maryland Comptroller issued guidance adding complexity to the administration of multiple points of use (MPU) exemption certificates.
• Buyers using services in multiple jurisdictions can provide sellers with an MPU exemption certificate, shifting tax payment responsibility to the buyer.
• The tax is apportioned based on use within Maryland compared to all locations of use.
• Installment sales require one MPU certificate for all payments, while subscriptions require a separate certificate for each payment.
• The Comptroller’s staff may update the guidance on subscription certificates in the future.

Source: insidesalt.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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