# Do I need to charge sales tax?



## minervaink (Jan 21, 2010)

Question - I am in Jersey and according to NJ there is no tax on clothing... So I have not been charging tax on the apparel that I sell. But should I be? Weds is the due date for the 3rd quarter taxes and want to do this right... Don't need the IRS knocking down my door! I have been charging tax on the promotional products and paper goods but the printed apparel I am so lost about. Thanks so much for all your help! 
Do I charge the tax for the apparel and not for the printing? Just for the printing, for nothing??


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## shorelinegraphix (May 12, 2008)

call the IRS, they are there to help with questions like that.


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## LPStuff (Sep 30, 2010)

Athena,

Your best bet is to call the IRS as Jason suggested. Usually collecting tax on sales is a STATE issue so a call to the NJ Department of Revenue may also be in order.

In Kansas we report sales tax collected ONLY on items we have sold to customers in the State of Kansas... I assume NJ is no different. Because we are an internet company the out of state sales cannot be taxed by us, therefore we do not collect. The IRS has to do mainly with your businesses employment taxes and generally NOT sales tax issues.

Good Luck!
Dennis


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## shopkeeperjim (Jul 14, 2010)

shorelinegraphix said:


> call the IRS, they are there to help with questions like that.


IRS is not going to help with NJ Sales Tax. Need to call NJ Dept of Rev, Sales Tax division


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## ovidstylecloths (Oct 13, 2010)

ok yes their is so much out their


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## jepaul (Apr 26, 2009)

Do they charge for it your malls?


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## minervaink (Jan 21, 2010)

No, they do not charge in the malls here...


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## minervaink (Jan 21, 2010)

OK - I called NJ Dept of Rev and the apparel is not taxable but the printing is but only if charged separately from the shirt. Ie - if you charge 10 for the printed shirt, not taxable but if you charge 4 for the shirt and 6 for the printing, the printing is taxable... Is what I was just told on the phone. Which makes no sense... They are still paying for the printing regardless of how it is billed. I love this state!

NJ Division of Taxation - Sales & use Tax Publications - S&U - 4


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## shopkeeperjim (Jul 14, 2010)

Don't try to over think it. Do you really want to try to breakdown every step for the customer or do you want to sell shirts. In my store, we sell shirts, and we offer personalization of customer owned shirts. For you, this would be shirts with no tax and personalization with tax. Don't make it too hard for yourself.
Jim


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