What does New Jersey not tax on?
New Jersey leaves several everyday necessities out of its sales-and-use tax rules. Therefore, many routine purchases ring up without state tax.
When does New Jersey use tax apply to online or out-of-state purchases?
The rules of sales and use tax in New Jersey vary in accordance with what you buy and how it's delivered. New Jersey sales tax exemptions cover many basics. However, the New Jersey use tax may apply when a seller doesn't charge tax. That's why receipts and descriptions matter.
What purchases are excluded from New Jersey sales and use tax?
The categories presented below are generally exempt at checkout. And they might require a form on file for businesses.
When can tax still apply?
Tax can show up when the purchase is a prepared meal, a non-essential add-on, or a product type that varies in line with how it’s billed. Digital items are a common example.
How do you avoid a surprise use tax bill later?
- Look at the invoice description before assuming an item is exempt
- Store exemption paperwork where you can find it fast during an audit
- Review out-of-state purchases that end up used in New Jersey, since the buyer might owe tax if none was collected
Wasserman Accounting CPAs presents expert assistance
If you want to sanity-check how your purchases and sales are being treated, reach out to our team today. Our team is ready to provide assistance in organizing your supporting documents and New Jersey registrations.
