Sales and use taxes are consumption taxes imposed at the U.S. state and/or local level on the purchase of taxable property or services. Whether an item or service is taxable depends on the laws of the state and locality of where the goods are delivered or the services are received. Sales tax rates can vary significantly by jurisdiction and can range from a few percent to upwards of 10%. For example Sales tax in New York City is 8.875%.
You are subject to sales or compensating use tax if you:
- Purchased an item or service subject to tax that is delivered to you in New York State without payment of New York State and local tax to the seller;
- Purchased an item or service outside New York State that is subject to tax in New York State (and you were a resident of New York State at the time of purchase) with subsequent use in New York State.
Keeping up to date with your sales tax payments for your business is critical to avoid costly penalties. Just like any other tax, state sales and use tax rates fluctuate from jurisdiction to jurisdiction depending on the service provided. Not filing your sales tax regularly puts your business in high risk for an audit. Thus, it is important to pay all assigned sales tax whether you are a quarterly, monthly or annual filer.
We have expertise in performing and filing sales tax forms in NY, NJ & CT