newdude

I'm starting a small apparel company. The company is based in PA but the merchandise is stored and shipped from NJ.

My questions are as follows:
1. Do I charge tax on the apparel? Is it only if PA charges sales tax on apparel or only if NJ charges tax on apparel? Or only when selling to a PA customer or an NJ customer? or what?

2. I'm also going to be selling other merchandise (i.e. towels, mugs, shot glasses). How do I determine what taxes need to be charged on those (non-apparel) items???

3. Unrelated to any online sales, when I sell my apparel wholesale to buyers who will then sell them retail, should I be charging tax to wholesale buyers in PA? In NJ? not at all? what?

Thanks in advance!

 

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Randy_the_Great

I'm new to this whole thing so don't take what I say too seriously but I'm pretty sure that if you're selling T-shirts in PA you don't have to include a sales tax, but if you were to sell to someone in NJ you'd have to include because, correct me if I'm wrong, but NJ has sales tax on clothing

 

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SunEmbroidery

I would call my local SBA office to get information/contact information for tax questions in PA. NJ supplies tax bulletins that answer questions and list what items are tax exempt. BTW clothing is exempt in NJ but if you provide just the service of embroidery or screen printing that is taxable. Many NJ tax answers can be found at http://www.state.nj.us/treasury/taxation/.

If you sell to a business that will charge tax to the end user you would not charge the business but should verify that they are a business that is subject to collecting tax and not an end user.

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hamlettsigns

Here is a good link explaining sales tax state to state Sales Tax on the Internet: Who Pays It, Who Doesn't

 

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tfalk

Quote: Originally Posted by Randy_the_Great correct me if I'm wrong, but NJ has sales tax on clothing

NJ does not charge sales tax on clothing.

You are required to file quarterly returns with the NJ Division of taxation reporting your gross sales and zero sales tax.

State of New Jersey Division of Taxation

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