SALES TAX 101 for NEW YORK

By December 3, 2018 New York

The 10 Basics Every New York Business Should Know About SALES TAX

What is Sales Tax in New York?

Sales of tangible personal property are subject to New York sales tax unless they are specifically exempt.  Sales of services are generally exempt from New York sales tax unless they are specifically taxable.

Are All Goods and Services Taxable?

No

How Do I Know What’s Taxable and What’s Not?

This link can help you determine what is taxable and what isn’t in New York.

Who Pays Sales Tax?

Consumers pay sales tax.  Merchants do not pay sales tax out of their own pockets.  It’s commonly referred to as a  pass through tax.

What Am I Responsible For?

You are required to collect sales tax, hold it secure and send it to the State on-time and in-full.

When Is My Sales Tax Payment Due in New York?

In New York  your tax filing frequency is determined by your revenue.  You may be a quarterly or monthly filer. Contact the state to determine your sales tax due date. Click here for a list of due dates.

How Do I Know How Much Sales Tax to Charge? 

Sales tax rates in New York are a combination of the state, county and city taxes. Click here to find your sales tax rateThe final and definitive answer is always the sales tax rate posted on State Department of Revenue website.  Rates posted on the web are often not up-to-date and incorrect.  It’s always the merchant’s responsibility to charge the correct sales tax rate.

Who Gets the Sales Tax Money?

In New York all sales tax, State, County & City, gets paid directly to the State.

How Do I Manage Tax Exempt Sales?

Tax exempt organizations such as schools and religious organizations are often exempt from sales tax. They are required to give you copy of their “TAX EXEMPT CERTIFICATE” at the time of the sale and you are required to keep this certificate on file. Failing to do so may result in you paying the sales tax out of your own pocket if you have a sales tax audit.

What if I Forget to Pay or Spend the Money and Can’t Pay?

New York  has severe penalties for missing tax payments. You can find the penalties for late payments here. If you received a letter from the state for a late sales tax payment, you can call  518-485-2889  for assistance. If sales tax goes unpaid, states will seize the assets of the business or owner and auction them off to pay the debt. In extreme cases owners will be prosecuted and sent to jail. Even if the business closes, sales tax is a personal liability that will follow the owner until paid.

New York Sales Tax

TAX RATE: The combined sales and use tax rate equals the state rate (currently 4%) plus any local tax rate imposed by a city, county, or school district.

New York Sales and Use TAX HELP: (518) 485-2889

This resource page is for informational purposes only.  If you have further questions regarding sales tax please contact DAVO support at 888-659-8432 or consult your tax adviser.

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