Sales Tax

Sales tax filing is a important part of your business’ operational process. According to the NYS Dept of Taxation and Finance, you may be required to collect sales tax on the products or services that you sell. For example, if you sell items at a retail store or food establishment, or perform services such as auto repairs, pool cleaning, or lawn care, you must collect sales tax from your customers. Most products and certain services are subject to sales tax. However, you may be able to purchase certain items, such as inventory that you intend to resell, without paying sales tax.

To legally make taxable sales, or to issue or accept most sales tax exemption certificates, you must have a Certificate of Authority from the Tax Department. This certificate proves that your business is registered for sales tax purposes. In general, you must apply for a Certificate of Authority at least 20 days before you intend to do any business that requires you to collect sales tax, or issue or accept exemption certificates. If your business makes taxable sales before receiving a Certificate of Authority, you may be subject to a penalty of up to $10,000. To learn more about this process and to order to avoid unnecessary fines and penalties, call the Sela CPAs Financial Group.