Do I need to collect Sales Tax?
You need to collect sales tax (New York State) if you plan to make sales of tangible personal property or services. For example:
If you sell furniture, appliances, clothing, jewelry, food, etc. you may be surprised to know that you also need to collect sales tax if you sell artist sketches, paintings, photographs and also if you plan to sell coins or other monetary instruments if sold without the purpose of using them as a medium of exchange.
You need to collect sales tax on services provided, such as hotel accommodations, places of amusement, live performances, club dues (if over $10) etc.
Also, if you offer services that repair, maintain, service or process tangible property, offer interior decorating services, entertainment services (by means of telephone or telegraph), parking, car rental, detective or protective services then you need to collect sales tax.
The following services only pay New York City Sales tax if they are delivered within the area:
Credit rating and reporting, beautician, barbering, tanning, electrolysis, manicuring, hair restoring services, and massage services. These taxes are paid only if the services are delivered to customers within NYC. These services do not pay New York State sales tax, or other local taxes.
An exemption is made for some credit rating and reporting services that need to pay NYS state and local taxes.
Note also, that certain New York State school
districts levy sales tax on utility services
For a complete list review check Publication 750
You do not need to collect sales tax on the following:
Food products that are sold by food markets (with exceptions), drugs and medicines, medical equipment and supplies (except if used with the intent of providing services), shoe repair, periodicals, laundering and dry cleaning services, and veterinarian services provided by a licensed practitioner
Overview of the NY Sales Tax.
- Do I need to collect Sales Taxes?
- How do I obtain a Sales Tax authorization (Certificate of Authority)?
- Certificate of Authority: Vendor Responsibilities and Types of Certificate of Authority
- Filing Requirements
- Calculating Sales Taxes and Record Keeping
- Other Information about NY Sales Taxes: Taxable Business Purchases and NY, NJ and CT Sales Agreement