Monday, March 17, 2014

When you must pay NYS, local sales or use tax directly to Tax Department?

When you purchase taxable property or services from a seller (vendor) located in New York State and take delivery in New York State, the vendor should collect state and local sales tax due and send it to the Tax Department. However, you are responsible for paying the tax directly to the Tax Department under the following circumstances:

Deliveries into New York State without collection of sales tax

You owe state and local sales tax if you purchase taxable property or a taxable service that is delivered to you in New York State without payment of New York State and local tax to the seller, such as through the Internet, by catalog, from television shopping channels, or on an Indian reservation.

Purchases of property or services outside New York State with subsequent use in New York State

You may also owe New York State and local use tax if you are a resident of New York State at the time you purchase any of the following outside New York State:

• property you bring into New York State for use in New York State;

• a service performed on property outside New York State, and you bring the property into New York State for use here; or

• a service (such as a protective or detective service) provided to you within New York State.

However, you are not required to pay state and local use tax on any property or service performed on property that you purchased outside the state before you became a resident of New York State.

READ MORE from the NYS Tax Department.

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