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As a New York based business do I have to collect New Jersey state tax?

  
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Subject Author Date
As a New York based business do I have to collect New Jersey state tax? sithlord70 12-25-2006
Posted by sithlord70 on December 25, 2006, 10:13 am
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 I am trying to get a clear answer on this. I've heard
different things from different people. I am a sole
proprietor in New York with a small onsite computer repair
business. Most of my customers are based in New York for
which I collect NY sales tax on my labor and any parts that
I buy wholesale. I have just picked up my first New Jersey
client just over the border. My question is, do I have to
collect NJ sales tax my labor since I did the work at his
location. Its my understand that it is not required for me
to collect it and that the client is responsible to pay it
to the his state. NY and NJ has a reciprocal tax agreement
that I can sign up for but it seems to be that that it is
voluntary and not required. Whats the answer on on all this.
Do I or do I not have to collect NJ sales tax?

Thanks in advance,
Adam

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Posted by Benjamin Yazersky CPA on December 25, 2006, 8:53 pm
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> I am trying to get a clear answer on this. I've heard
> different things from different people. I am a sole
> proprietor in New York with a small onsite computer repair
> business. Most of my customers are based in New York for
> which I collect NY sales tax on my labor and any parts that
> I buy wholesale. I have just picked up my first New Jersey
> client just over the border. My question is, do I have to
> collect NJ sales tax my labor since I did the work at his
> location. Its my understand that it is not required for me
> to collect it and that the client is responsible to pay it
> to the his state. NY and NJ has a reciprocal tax agreement
> that I can sign up for but it seems to be that that it is
> voluntary and not required. Whats the answer on on all this.
> Do I or do I not have to collect NJ sales tax?

If you provide a service in NJ that is subject to NJ sales
tax, then you have to collect it.
Whether or not the NY/NJ combined reporting is beneficial to
you, you would have to discuss that with your own CPA.

________________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Katie on December 29, 2006, 8:52 pm
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sithlord70@gmail.com wrote:

> I am trying to get a clear answer on this. I've heard
> different things from different people. I am a sole
> proprietor in New York with a small onsite computer repair
> business. Most of my customers are based in New York for
> which I collect NY sales tax on my labor and any parts that
> I buy wholesale. I have just picked up my first New Jersey
> client just over the border. My question is, do I have to
> collect NJ sales tax my labor since I did the work at his
> location. Its my understand that it is not required for me
> to collect it and that the client is responsible to pay it
> to the his state. NY and NJ has a reciprocal tax agreement
> that I can sign up for but it seems to be that that it is
> voluntary and not required. Whats the answer on on all this.
> Do I or do I not have to collect NJ sales tax?

You do have to collect NJ sales tax if you perform taxable
services within the state. You must register as a seller
with the state of New Jersey and file sales and use tax
returns there.

You can get the details on the NY-NJ reciprocal agreement in
New Jersey Division of Taxation Publication ANJ-14, which is
available on line. Under that agreement, you would not be
required to register as a seller with New Jersey. You would
collect the tax at the appropriate rate for the NJ
jurisdiction where the service is performed, and pay it over
to the state of New York along with your regular sales tax
collections. New York would then pay it to New Jersey.

Either way, you must collect and pay over the tax.

Katie in San Diego

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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