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    NumberMatrix's Avatar
    NumberMatrix Posts: 5, Reputation: 1
    New Member
     
    #1

    Nov 25, 2017, 11:18 AM
    NY Use Tax
    My business is in NYC and I am buying lamps from a vendor in California who is not charging me any taxes (legally). I have read that I still need to pay Use Tax because those lamps would be taxable if purchased in NY. I would like to know how much NY Use Tax I would be obligated to pay?

    Do I need to pay all of the following only a portion?

    "The total sales and use tax rate in New York City is 8.875%.This includes:

    • New York City local sales and use tax rate of 4.5%
    • New York State sales and use tax rate of 4%
    • Metropolitan Commuter Transportation District surcharge of 0.375%"



    What if I receive the product in NY for only a day and then have them shipped overseas as gifts for my clients and they are not used or stored in NY? Do I still need to pay the tax?

    Thank you in advance!
    cdad's Avatar
    cdad Posts: 12,701, Reputation: 1438
    Internet Research Expert
     
    #2

    Nov 25, 2017, 11:55 AM
    SInce you are the end point of sale then you owe the raxes on it. If the purchase were made as part of inventory and not end of sale then you may bypass the taxes until the item sells. So if they are a "gift" then there is no charge to the end party and you would be the end of sale for that item.
    NumberMatrix's Avatar
    NumberMatrix Posts: 5, Reputation: 1
    New Member
     
    #3

    Nov 25, 2017, 12:59 PM
    I agree.

    Do I need to pay all of the following only a portion?

    "The total sales and use tax rate in New York City is 8.875%.This includes:


    • New York City local sales and use tax rate of 4.5%
    • New York State sales and use tax rate of 4%
    • Metropolitan Commuter Transportation District surcharge of 0.375%"




    What if I receive the product in NY for only a day and then have them shipped overseas as gifts for my clients and they are not used or stored in NY? Do I still need to pay the tax?
    cdad's Avatar
    cdad Posts: 12,701, Reputation: 1438
    Internet Research Expert
     
    #4

    Nov 27, 2017, 02:44 PM
    The whole concept behind the tax is that the end user ( the final customer) is to pay the tax otherwise it is considered wholesale and not for personal consumption. In your case where your giving them as presents then they are not being purchased by the people recieving the gifts so in progression of sales you would represent the final sale of the item so your the one responsible for paying the taxes on it.
    NumberMatrix's Avatar
    NumberMatrix Posts: 5, Reputation: 1
    New Member
     
    #5

    Nov 29, 2017, 07:25 AM
    Thank you for your response.

    I totally understand what you mean and it makes sense. You are saying that if we do not pay the tax then who will? Therefore, we must pay the tax. I thought there was a loophole such as us purchasing online from California (Who does not pay the tax) and we ship the goods to others without the goods reaching NY, that we would be able to avoid the Use Tax. But this is not true?

    https://www.tax.ny.gov/pubs_and_bull...businesses.htm

    Purchases made over the Internet, from catalogs, or by phone from businesses that are located outside of New York State
    When you purchase taxable property or services over the Internet, from catalogs, or by phone without paying New York sales tax, and the seller delivers the property or services to you in New York by common carrier, you are required to pay use tax.
    Example: You buy a computer through a retail Web site from a business that does not collect New York sales tax. It is delivered by a freight company to your business in New York State. You owe New York State and local use tax on the cost of the computer, including any charge for shipping and handling.

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