If you’re selling digital services and products to customers in New Jersey, then you might be liable for the state’s sales tax. This guide covers two very important parts of the system:
Registering for the tax, and then
Filing tax returns on time.
We’ve scoured the New Jersey Division of Taxation website to provide you with all the necessary information about sales tax for businesses in one place.
How to register for sales tax in New Jersey
Remote sellers can register for sales tax in New Jersey (NJ) online, and then create an account with their Premiere Business Service, an online tax portal. This portal is also where you’ll file and pay your tax returns. More on that later!
The first step is to register for a sales tax permit. This is a really simple process! But before you begin, have this information handy:
Your Social Security number (if registering as a sole proprietor with no employees)
2. The next page asks about what kind of business you’re registering. If you don’t have any physical presence nexus in NJ, you need to select “Register as Remote Seller only.”
If you do have physical presence in NJ, even just storing inventory in a warehouse there, then you are not considered a remote seller and need to complete the Online Business Formation process.
3. Then you’ll answer a few standard questions about your business, such as the day you’ll begin taxable sales in NJ and whether you plan to sell year-round.
4. Next there’s a series of questions about your contact information and address.
5. Finally, you’ll complete registration by agreeing to the terms and “signing” (typing) your name as the Authorized Representative.
After your application is reviewed and approved, you should receive a seller’s permit and registration certificate. You’ll also receive a security code in the mail that will enable you to create an online tax account.
The website doesn’t state how long you should expect to wait, but if you have any questions, you can contact the tax office through this support form.
When you receive your Business Registration Certificate, you should also receive an Authorization to Collect Sales Tax by mail. This will come with an assigned tax filing frequency: monthly or quarterly.
2. The process is really fast. You just need to provide contact information (and the myNewJersey credentials aren’t necessary).
3. Complete the sign-up process and confirm your email address, if prompted.
How to file sales tax returns in New Jersey
Sales and taxes should be reported and filed using US dollars. If you’ve made any transactions in New Jersey in a different currency, be sure to convert those to USD using official currency exchange rates.
When to file and pay
You must file a sales tax return either monthly, quarterly, or yearly. The deadlines* are as follows:
Monthly For monthly filers, reports are due on the 20th day of the month following the reporting month. For example, the July sales tax report is due August 20.
Quarterly For quarterly filers, reports are due on the 20th day of the month following the reporting period.
April 20, for first quarter ending March 31
July 20, for second quarter ending June 30
October 20, for third quarter ending September 30
January 20, for fourth quarter ending December 31
*It’s always possible to file before the deadline. NJ’s website gives this warning:
“If you do wait until the filing due date, you may experience high volume related errors with the online filing system. These issues are usually intermittent, but may impact your ability to file timely.”
Note: Didn’t make any sales in New Jersey during your reporting period? You should still report that. This is often called a “zero return” and it follows the exact same process as a normal return. (Just a little less data entry 😉)
How to file
Before you get started, you should collect all the information about your taxable sales in New Jersey during the previous quarter. The tax website suggests having these pieces ready:
total sales and income
total purchases and expenses
You can file the return online using your Premier Business Services account. Log in here.
Once the return successfully filed, you’ll receive a confirmation number on the next screen.
How to pay
Tax payments must be made electronically and in US dollars. You can pay directly at the time of filing.
Payment options include:
Electronic check (e-check)
Electronic funds transfer (EFT)
Credit card: American Express, Mastercard, Visa, Discover
What to do in between registering and filing?
Well, you must comply with all the rules for New Jersey sales tax! That means charging 6.625% sales tax and watching out for local level taxes, among other things.
* At Quaderno we love providing helpful information and best practices about taxes, but we are not certified tax advisors. For further help, or if you are ever in doubt, please consult a professional tax advisor or the Tax Agency.
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