Here’s what you should know when planning your shopping weekend.
Which items are eligible and what should I buy?
Consumers look forward to this annual summer ritual when planning major purchases. However, the VAT exemption does not apply to all products.
Again, all individual items over $2,500 are taxed at the regular tax rate. A number of other purchases are not eligible for the exemption. These include:
- Catering
- Motor vehicles
- Motorboats
- Telecommunications services
- gas
- steam
- Electricity
- Tobacco products
- Marijuana or marijuana products
- Alcoholic beverages
Which retailers participate in the tax exemption?
All businesses in the state that are open on Saturdays and Sundays and normally make “taxable sales of tangible property in Massachusetts or to purchasers in Massachusetts” must participate in the sales tax-free period, according to the state.
What happens if my purchase exceeds $2,500?
If you want to purchase an item that costs more than $2,500, the entire purchase is subject to sales tax, not just the amount above the threshold.
This applies to a single item. If you purchase multiple items that each cost less than $2,500, but your total bill exceeds the limit, your purchase will still qualify for the tax exemption.
Does the tax-free weekend apply to both online and in-store purchases?
Yes, purchases made online or in-store this weekend may be exempt from sales tax. Online purchases are eligible if made on Saturday or Sunday during Eastern Daylight Time, even if the item is delivered after the end of the holiday.
If I have already made a purchase, can I cancel it and make it over the holiday weekend instead?
The state says you can’t do that. If a buyer paid a deposit, paid for the item up front, or otherwise promised to pay for the item before the holiday, they can’t cancel and re-book the purchase that weekend to avoid sales tax.
What about rentals and hire purchase?
According to the state, the tax exemption does not apply to items purchased on installments. However, rentals of up to 30 days are exempt from sales tax, with the exception of motor vehicles and motorboats.
What happens if I am still charged VAT?
Keep your receipts. If you discover you were mistakenly charged sales tax, bring the receipt or other proof of purchase back to the store. The state says the business is responsible for refunding you the tax you paid.
For more information about the holiday weekend, visit the state website.
Nick Stoico can be reached at [email protected].
