Can I collect sales tax from customers in different states without violating tax laws in New York? What are the requirements?

Sales Tax Collection Requirements for Customers in Different States

When selling goods or services to customers in different states, it is important to understand the sales tax laws and requirements of each state. Each state has its own rules regarding sales tax collection, and failure to comply with these rules can result in penalties and fines.

In the context document ^[1.2], we find exemptions from use tax in New York. However, it does not provide information on sales tax collection requirements for customers in different states.

Based on our research, if you are selling goods or services to customers in different states, you may be required to collect sales tax in those states. This is because each state has its own sales tax laws and requirements, and some states require out-of-state sellers to collect sales tax on sales made to customers within their state.

To determine your sales tax obligations in each state where you have customers, it is recommended that you consult with a tax professional or attorney. They can help you understand the sales tax laws and requirements of each state and ensure that you are in compliance.

In summary, it is important to understand the sales tax laws and requirements of each state when selling goods or services to customers in different states. Consult with a tax professional or attorney to determine your sales tax obligations in each state where you have customers.

^[1.2] NYCL TAX § 1118: Exemptions from use tax.

Source(s):

• [1.2] Exemptions from use tax

Jurisdiction

New York

• General