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Finance to check for business license compliance
The Department of Finance will be inspecting business establishments in the Commonwealth to ensure that they have business licenses and are issuing receipts to customers.
The inspection is intended to ensure compliance with the Business Licensing Processing Act of 1998 and the Sales Receipt Act of 2002.
The Licensing Act and Business License Regulations require businesses to obtain a business license, for each line of business and business location, before engaging in business in the CNMI. Business licenses must be renewed within 30 days prior to the expiration of the current license. Any business found operating without a valid business license shall be subject to a penalty of $1,500 and may be subject to an additional penalty of $250 per day for every additional day that the business is in violation.
As a measure to reduce administrative costs, the Department of Finance will no longer be issuing courtesy business license renewal notifications. Accordingly, take note of business license expiration dates to ensure that business licenses are renewed timely.
The Receipt Act and Cash Receipts and Compliance Regulations require all persons who receive gross revenue from a sale in the CNMI to provide a receipt for the transaction. In addition, such persons are required to preserve legible copies of sales receipts, including voided receipts, for a period of at least six calendar years following the year of transaction. Receipts must be totaled daily by receipt sequence range and meet the specifications outlined in the Regulations. Violations of the Act could result in fines of up to $2,500 and business license revocation.
For additional information, contact the Enforcement and Regulatory Branch at (670) 664-1010. (PR)
