# Sales Tax at Trade Shows in and out of State



## artswear (Jun 20, 2011)

I am posting this here after frustrating telephone calls to my local state tax office, and still no straight forward answer....

I am making and selling custom decorated garments. My business is located in new jersey, but I will be attending trade shows in and out of new jersey, as well as on the internet. I'm not sure what to do about sales tax. Do I charge sales tax for what I sell at trade shows (all of them, or just the ones in/out of NJ?), and, do I charge sales tax for the internet sales? 

I was once told that if I provide the garment and do the decorating myself, I do not need to charge tax. But if someone gives me a garment and I do the decorating, then I should charge tax since I am not providing a service.

I'm a bit confused and as I mentioned was not completely confident with the info I heard on the phone. Thanks for any advice.


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## splathead (Dec 4, 2005)

For in-state sales I would revisit your state's sales tax department website and read up on the latest law. 

For online sales where you are shipping to another state, there is no sales tax.

If you are selling at out of state trade shows, and the buyer is taking the merchandise with them, then you may need to get a temporary tax permit for the state you're selling in. 

If you selling at out of state trade shows and not sending the buyer their merchandise until you get back to NJ then it's my understanding no sales tax is charged. Again, check with whatever state you're visiting for their specific law.


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## taricp35 (Dec 10, 2008)

I thought New Jersey didn't have sales tax? A company from New Jersey told me that yesterday.


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## artswear (Jun 20, 2011)

This is what is states on the NJ State Tax website. Since clothing is listed, can I take this to mean that I do NOT have to collect sales tax on the decorated apparel I sell in NJ? For selling at trade shows outside of NJ, do I have to follow their tax laws, or would the NJ tax laws apply since the biz is established in NJ? As Joe suggested, it may be the case that I may have to get a temp. tax certificate in the state I am selling in. If so, does that tax get sent to that state?

"Major exemptions include: sales of newspapers; magazines and periodicals sold by subscription and membership periodicals; casual sales except motor vehicles and registered boats; clothing; farm supplies and equipment; flags of New Jersey and the United States; unprepared food and food ingredients purchased for human consumption; food sold in school cafeterias; prescription and certain nonprescription drugs and other medical aids; motor fuels; textbooks; professional and personal services unless otherwise taxable under the Act; real estate sales; tangible personal property used in research and development; production machinery and equipment."


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## missswissinc (Feb 21, 2012)

Don't mind me asking does a CPA do your taxes?. if they do ask them since they are the ones who have to do your taxes for your business. Our company since its in NY is required to collect sales tax on the items we sell that are bought by customers in NY. Now we have sold items to clients in PA and NJ and we were told you don't need to collect sales tax. However, with NY you have a 2 tier system. If you sell a shirt item that is over $50 or novelty item or what ever the customer wants from us we have to charge the overall tax of 8.125%. now if we sell a shirt under 50 we only charge the 4.125% for the county since they didn't drop the county sales tax on clothing purchases.


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## artswear (Jun 20, 2011)

As of now, I plan to do my own taxes on my regular joint return as I am a small start up and my volume should be manageable. It would be great if it turns out otherwise by the end of the year, at which point I may have a CPA to consult, but not at this time.

The states where I will be attending trade shows are CT, NY, PA, Boston MA, and Maryland. My biz is registered in NJ.

In looking at the posts from joe and mikr, there seems to be contradictory information. According to Joe it sounds as if where I am physically located when I make the sale, determines the tax I need to charge, i.e. sell online to an out of state client, no tax...sell to an out of state client while physically being in their state, then follow that states tax rules. However, mikr states that even though he is physically located in NY, if he sells to a client in NJ, he charges no tax. I would take this to mean then that even online sales to clients in other states would need to charge the sales tax in that state, as would my attending trade shows in other states? Am I correct, or confused?


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