Any business that sells goods or taxable services within the state of New Jersey to customers located in New Jersey is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in New Jersey must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in New Jersey State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in New Jersey
- You have a distribution location such as a storage area or warehouse space with goods
- You have employees physically present in New Jersey (including independent contractors, sales persons, representatives, or agents)
- Your business owns real or personal property
- Your business delivers merchandise in New Jersey with company owned vehicles
- Your business provides maintenance programs in New Jersey
- Your business has taxable services in the state of New Jersey
What constitutes taxable services in New Jersey State?
The majority of service businesses are not taxable in New Jersey. The exceptions would be a information service provider (example of this would be a commodities newsletter ) and Janitorial services.
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of New Jersey?
As a wholesale company conducting business in the state of New Jersey, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
If you an online seller, do you need to collect sales tax on shipping and handling of merchandise?
Shipping and handling charges are taxable only id the product being sold is a taxable item. However, if taxable and nontaxable items are being shipped together, you must pay sales tax for shipping on the percentage of the sale that’s taxable.
Is there sales tax on drop shipments in the state of New Jersey?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third-party shipper. In most instances, drop shipments in New Jersey are required to have sales tax added
Are there any exemptions to taxable items sold?
Certain prescription medicines, medical devices, raw materials and machinery, general clothes, newspapers and magazines, custom downloadable software and groceries are tax exempt.
Register for an New Jersey sales/use tax number
New Jersey state, county, city, & municipal tax rate table