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New Jersey’s Internet and Mail-Order Sales Tax Rules

  • Apr 13, 2015 | Gail Cole

 Does your business need to collect New Jersey sales tax?

In 2014, New Jersey New Jersey Division of Taxation published a bulletin that clarifies how the state sales tax rules apply to mail-order and internet retailers.

As a general rule, sellers with nexus in New Jersey must collect and remit New Jersey sales tax “when such sales are completed by delivery of the item(s) to a New Jersey location.” Certain out-of-state sellers are also required to collect and remit tax on sales to New Jersey customers.

It is particularly important to note that persons or entities soliciting business in New Jersey are required to register with the state and collect tax. Remote sellers are presumed to be soliciting business – and have nexus with New Jersey – if the following conditions are met:

  • “The seller enters into an agreement with a New Jersey independent contractor or other representative to refer potential customers via a link on a website, or otherwise, to that out-of-stae seller in exchange for consideration based on completed sales; and
  • The seller has sales from these referrals to customers in New Jersey in excess of $10,000 for the prior four quarterly periods ending on the last day of March, June, September, and December.”

Please see the Division of Taxation’s notice regarding the sales and use tax requirement for out-of-state sellers to collect sales tax if soliciting business in New Jersey for additional details.

Streamlined Sales Tax

Businesses may also register through the Streamlined Sales and Use Tax (SST) Project. The SST central online registration system allows sellers to register with every member of the Streamlined Sales and Use Tax Agreement (SSUTA). Registration is voluntary but, once registered, businesses must “collect and remit tax on all sales sourced to any full-member state.”

Automated sales tax Software-as-a-Service is particularly beneficial to businesses selling into more than one tax jurisdiction; it facilitates transaction tax management and increases compliance in all states. Learn more.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Gail Cole
Avalara Author
Gail Cole
Gail Cole
Avalara Author Gail Cole
Gail began researching and writing about sales tax in 2012 and has been fascinated with it ever since. She has a penchant for uncovering unusual tax facts, and endeavors to make complex sales tax laws more digestible for both experts and laypeople.