|Organization:||Massachusetts Department of Revenue|
|Referenced Sources:||Massachusetts General Laws|
Sales and Use Tax
August 10, 1981
********** ("Corporation") is a Tennessee corporation that purchases computer equipment from *********** ("Manufacturer"), a Massachusetts manufacturer. The equipment is delivered by the Manufacturer to an interstate carrier in Boston for shipment to ********** ("Subsidiary"), a wholly-owned subsidiary of the Corporation located in London, England. Neither the Corporation nor the Subsidiary is engaged in business in Massachusetts within the meaning of General Laws Chapter 64H, Section 1(5).
You inquire whether the Massachusetts sales tax applies to the Manufacturer's sale of the equipment to the Company.
Chapter 64H, Section 2 of the General Laws imposes an excise on sales at retail of tangible personal property in Massachusetts. A sale of tangible personal property takes place in Massachusetts if title or possession of the property is transferred in Massachusetts (G.L. c. 64H, s. 1(12)(a)).
The sales tax does not apply to sales of tangible personal property which the vendor is obligated under the terms of any agreement to deliver to a purchaser outside Massachusetts or to an interstate carrier for delivery to a purchaser outside Massachusetts (G.L. c. 64H, s. 6(b)).
Based on the foregoing, it is ruled that the Manufacturer's sale of the equipment to the Company is not subject to tax if the terms of any agreement require the Manufacturer to deliver the equipment to an interstate carrier for delivery to the Subsidiary in London.
Very truly yours,
/s/L. Joyce Hampers
L. Joyce Hampers
Commissioner of Revenue