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SALES TAX FOR EXPORTING ABROAD?
Anonymous2 views2 answers
We are a small business LLC registered in New Jersey.
We have manufacturers in Ohio US who will sell us the Industrial electronics goods.
We then have to export the goods to India, the company in Indian whom we are exporting to is a multinational and we have to give delivery here in New Jersey to that company's exporter.
Question: Do I need to collect New Jersey Sales tax while exporting the goods to India?
If no what documents should I get from the exporter in New Jersey whom I deliver the goods to?
Thank you
:)
If you are delivering the goods to the indian company in the state of New Jersey, then the transaction is most likely subject to sales tax. However, if the India company exporter is located in New Jersey, then they are likely already registered for NJ Sales and Use Tax puroses. They need to give you a New Jersey Resale Certificate (or the NJ equivalent). You will need this documentation to prove you were not legally required to collect sales tax on the sale to the New Jersey export company.
I hope this answers your question.
Typically, no you would not have to collect sales tax to an exporter that is not ultimately selling the goods in the State of New Jersey. However, you may need a resale permit from this seller so that you can indicate on your sales tax return what happened. This can be a complicated area of the law and you would should hire a CPA familiar with these matters to prepare your sales tax return and help you through issues such as these. If you make a mistake with collecting sales tax you can have possible personal liability for the unpaid taxes.
