Sales Tax For Online Sales in Nj

I am starting to sell some products online in the state of New Jersey.

Products I plan to sell are Oil Paintings, Tapestries, Leather

jackets, and Jewelry. I would like to know details of which products

I need to tax my customers for, and which products I do not need to

tax. I was told that i could find the information here

http://www.taxadmin.org/fta/link/, in the NJ section. But I have

struggled to find any relevant information. Thanks in advance.



3 thoughts on “Sales Tax For Online Sales in Nj

  1. Hello wataru210-ga,

    I run a small online business myself, and had to tackle this same

    question: do I have to charge sales tax, and if so, who do I have to

    charge, and what do I have to charge it for?

    The bottom line is this: You do not have to charge sales tax for

    online sales to out-of-state customers.

    If you are located in a state in the US, you probably DO have to

    charge sales tax for customers in that state, depending on the item in

    question.

    If you have more than one location in different states, you MAY have

    to charge customers in each state in which you are located, although

    this depends somewhat on the nature of your business oranization.

    A good, up-to-date write-up on this topic can be seen here:

    http://www.nolo.com/lawcenter/ency/article.cfm/objectID/87F6DD43-E6F2-4DFE-BCDB8E2E85DFF80B/catID/806B7BA0-4CDF-4221-9230A3135E2DF07A

    Sales Tax on the Internet: Who Pays It, Who Doesn't

    and includes this summary of the situation:

    "If an online retailer has a physical presence in a particular state,

    such as business offices or a warehouse, it must collect sales tax

    from customers in that state. If a business does not have a physical

    presence in a state, it is not required to collect sales tax for sales

    from customers in that state."

    Another article on the topic can be seen here:

    http://www.entrepreneur.com/article/0,4621,307444,00.html

    Navigating the Internet Sales Tax Laws

    and pretty much reiterates the same message:

    Q: Do I have to charge sales tax on orders placed on my Web site?…

    A: Online companies with a physical presence, or nexus, in a state are

    required to collect and report taxes on sales made to customers living

    within that same state. For example, if your online business is based

    in California, you must collect and report sales tax derived from

    fellow Californians making purchases on your site…

    Now…for sales to customers that do live in NJ, what are the rules…?

    You can find a terrific overview of NJ sales tax rules in this

    document from the New Jersey Division of Taxation:

    http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/su4.pdf

    New Jersey Sales Tax Guide

    It tells you how much to charge, and what products to charge tax on.

    Many food and drugstore items are exempt from sales tax, as are many

    clothing items.

    I trust this information fully answers your question. However, before

    rating this answer, please let me know if you need any additional

    information. Just post a Request for Clarification, and I'll be happy

    to assist you further.

    All the best with your business (and everything else) in the new year…

    pafalafa-ga

    search strategy: Used bookmarked links to sales tax sites.

  2. Dear pafalafa-ga,

    Thank you very much for your information.

    In my case, our businesss has a physical presence in New Jersey only.

    According to your information, I only have to worry about charging customers in NJ.

    In my case, I am selling Oil Paintings, Tapestries, Leather Outerwear, and Jewelry.

    Please clarify whether any of the above four product categories

    require taxing in NJ.

    The PDF you sent me does not include some of the above.

    Thanks again.

  3. wataru210-ga,

    You are correct…you only need charge sales tax for your NJ

    customers, and then, only on taxable items.

    As noted in the NJ Division of Taxation document, most "tangible"

    items are subject to 6% sales tax unless specifically exempted.

    I read this to mean that Oil Paintings, Tapestries, and Jewelry would be taxable.

    However, the jackets you are selling would seem to come under the

    exemption for clothing items, and would not be taxable (the definition

    of exempted clothing items on page 13 includes both inner and outer

    wear).

    If you want to hear this directly from the state authorities

    themselves, you can contact the Customer Service office in the

    Division of Taxation to confirm the status of your items:

    Phone — 609-292-6400

    E-mail — taxation@tax.state.nj.us

    Mail —

    New Jersey Division of Taxation

    Information and Publications Branch

    PO Box 281

    Trenton, NJ 08695-0281

    Let me know if you need any additional information.

    paf

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