How to Get New Jersey Sales Tax Permit | A Comprehensive Guide

Steve Bennett
Business Formation Expert  |   Fact Checked by Editorial Team
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New Jersey Sales Tax Permit

Have you ever wondered what a sales tax permit is in New Jersey? If you don’t, then we will guide you through it. In New Jersey, a sales tax permit, also known as a seller’s permit, is a legal document that allows businesses, specifically New Jersey LLC, to collect and remit sales tax to the New Jersey government. This permit ensures businesses operate legally and have the necessary permissions to conduct sales within a particular state. New Jersey has its own rules and regulations surrounding sales tax permits. Business owners must familiarize themselves with the requirements and processes to comply with the law.

In this comprehensive guide, Webinarcare Editorial Team will walk you through everything you need to know about obtaining and maintaining New Jersey Sales Tax Permit. From understanding the basics of sales tax to the intricacies of the application process, we have got you covered. You must be guided by all the factors gathered in this article.

What is a Sales Tax Permit?

A sales tax permit is New Jersey-issued license that allows businesses to collect and remit sales tax on the goods and services they sell. This permit ensures New Jersey businesses operate legally and have the necessary permissions to conduct sales within a particular state. In New Jersey, a sales tax permit is required for businesses that sell taxable goods or services and are required to collect sales tax from their customers.

Who Needs a Sales Tax Permit?

Not all businesses need a sales tax permit. Typically, businesses that sell tangible personal property or taxable services to customers within New Jersey require a sales tax permit. This includes brick-and-mortar stores, online retailers, and service providers. New Jersey may also require sales tax permits for businesses that sell certain types of products or services, such as alcohol or tobacco. If you plan to start a bakery business in New Jersey, you typically need a sales tax permit to collect and remit sales tax on the items you sell.

If your business operates in multiple states or forms a foreign LLC in New Jersey, you may need to obtain a sales tax permit for each state with a sales tax nexus. A sales tax nexus is a connection or presence a business has within a state that requires them to collect and remit sales tax. Factors that can create a nexus include the following:

  • Physical location
  • Employees
  • Inventory within a state

Obtaining a sales tax permit in New Jersey is not just about complying with regulations, but about seizing the opportunity to grow and thrive in the market. To start an LLC must be a gateway to establish a legitimate business presence and to build trust with customers. Embrace this essential step, for it paves the path towards success and prosperity.

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How to Get a Sales Tax Permit in New Jersey

The process for obtaining a sales tax permit varies from state to state. Generally, New Jersey businesses must apply through the New Jersey Division of Taxation. The following steps provide an overview of the application process:

Step 1: Determine If You Need a Sales Tax Permit 

Before applying, determine if your New Jersey business needs a sales tax permit based on the goods or services you sell and where you operate.

Most New Jersey businesses that sell tangible goods or services must have a sales tax permit. This includes:

  • Retailers – businesses that sell goods directly to consumers, such as clothing stores, grocery stores, and electronics stores.
  • Service Providers – businesses that provide services, such as hair salons, auto repair shops, and landscaping companies.
  • Wholesalers – businesses that sell goods to other businesses, such as distributors and manufacturers.
  • Online Sellers – businesses that sell goods or services online, including New Jersey E-commerce and online marketplaces.

Step 2: Register Your New Jersey Business

Register your business in New Jersey if you still need to. This may involve obtaining an Employer Identification Number (EIN) in New Jersey from the Internal Revenue Service and registering your business name with the New Jersey Secretary of State. 

Your New Jersey business name should be unique, memorable, and reflective of your products or services. There is a complete guide on New Jersey Business Name Search for a proper New Jersey business name. You can also check the availability of your desired business name by searching the New Jersey Division of Revenue & Enterprise Services‘s website.

In obtaining an EIN, it can be done through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

Complete the registration for a legal New Jersey business if you plan to sell tangible goods. 

Recommended: Professional services have the EIN included in their LLC formation package. We recommend using –

LegalZoom – ($0 + State Fee for LLC formation)

Step 3: Gather The Necessary Information

The next step is to collect the required information for the New Jersey sales tax permit application. To obtain a sales tax permit in New Jersey, you will need to gather the following necessary information:

  1. Business Details: Provide the legal name, mailing address, and contact information of your business, including your New Jersey DBA (Doing Business As) names.
  2. Entity Type: Indicate whether your business is a sole proprietorship, partnership, corporation, LLC, or legal entity.
  3. EIN/SSN: Have your Employer Identification Number (EIN) or Social Security Number (SSN) ready. This identification is required to associate the sales tax permit with your business.
  4. Purpose of Permit: Explain the nature of your business activities, such as retail sales, wholesale, manufacturing, or service, to determine the appropriate sales tax category.
  5. Product/Service Description: Provide a brief description of the goods or services your business offers, including any unique details that may impact the sales tax requirements.
  6. Nexus Information: Identify if your business has a physical presence or nexus in New Jersey, such as a brick-and-mortar location, employees, or inventory storage.
  7. Estimated Sales: Estimate your expected monthly or annual sales volume in New Jersey to determine the appropriate tax registration and reporting requirements.
  8. Previous Registration: If you are already registered for sales tax in another state, provide details to determine if any reciprocal agreements or exemptions apply.
  9. Supporting Documents: Some states may require additional documentation, such as a copy of your business license, federal tax returns, or a certificate of authority.
  10. Fee Payment: Be prepared to pay the required fee for obtaining a sales tax permit in New Jersey.

It’s important to note the exact requirements and processes in New Jersey. It is recommended to visit the official website of the New Jersey Division of Taxation or consult with a tax professional for accurate and up-to-date information.

Step 4: Complete The Application

Fill out the sales tax permit application form for New Jersey, either online or by paper. Be prepared to answer questions about your business operations, products, and services. You can register your New Jersey sales tax permit in Step 5: Pay Any Required Fees

In New Jersey, the state permit may charge a fee for obtaining a sales tax permit. Be prepared to pay this fee when submitting your application. Usually, it costs $0 (Free). 

Step 6: Submit The Application

Submit your completed application, along with the required fee of $0 (Free), to the New Jersey Division of Taxation.

Step 7: Receive Your Permit

Once your application is approved, you will receive your sales tax permit. This may be a physical document or an electronic certificate you can print. 

How to Maintain a Sales Tax Permit

After obtaining a sales tax permit, New Jersey businesses must maintain compliance with New Jersey sales tax laws. This typically involves the following steps:

  • Collect Sales Tax: Collect sales tax from customers on taxable goods and services. Be sure to charge the correct sales tax rate based on your and your customer’s locations. The sales tax rate in New Jersey is 6.625%. 
  • Keep Accurate Records: Maintained detailed records of all sales transactions, including the amount of sales tax collected. This information will be required when filing your sales tax returns. Hire a certified public accountant (CPA) to keep track of records. 
  • File Sales Tax Returns: File sales tax returns with New Jersey, typically monthly, quarterly, or annually, depending on your sales volume and New Jersey requirements. Be sure to remit the sales tax collected during the reporting period.
  • Renew your Permit: New Jersey requires businesses to renew their sales tax permits periodically. Know your state’s renewal requirements and complete the necessary steps to maintain your permit.

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Penalties for Non-Compliance

Failure to obtain or maintain a sales tax permit can seriously affect a business. Penalties for non-compliance can include fines, penalties, interest charges, and even the revocation of your business license. Additionally, New Jersey businesses that fail to collect and remit the New Jersey sales tax may be held personally liable for the unpaid taxes.

Do I Need a Sales Tax Permit If I Only Sell Online?

You likely need a sales tax permit if you sell taxable goods or services online and have a sales tax nexus in New Jersey. To have a Home-Based Business in New Jersey, you must still file and maintain a sales tax permit. 

How Long Does Obtaining a Sales Tax Permit Take?

The processing time for sales tax permit applications takes time. In New Jersey, they may issue permits within a few days, while others may take several weeks. Be sure to apply well in advance of when you plan to start selling taxable goods or services.

Can I Have Multiple Sales Tax Permits?

Businesses that operate in multiple states or sell different types of products may need multiple sales tax permits. Be sure to research the specific requirements for each state and product type. Having a foreign LLC is not quite easy since you still need to hire a Registered Agent, file for the Certificate of Formation of the state you wish to operate your business, and also, you need to have multiple sales tax permits. 

How Much Does a Sales Tax Permit Cost?

The costs and requirements for obtaining a sales tax permit vary depending on the state. To find accurate information about the cost of a sales tax permit in New Jersey, you can visit the New Jersey Division of Taxation’s website or consult with a tax professional or accountant familiar with your state’s regulations. They can provide the most up-to-date information on the costs and requirements for obtaining a sales tax permit in New Jersey.

FAQs

What is a sales tax permit?
A sales tax permit is a license that allows you to collect and remit sales tax to the state of New Jersey.
Do I need a sales tax permit in New Jersey?
If you make sales in New Jersey, you generally need a sales tax permit.
How do I apply for a sales tax permit in New Jersey?
You can apply for a sales tax permit online through the New Jersey Business Registration Portal.
What are the requirements to obtain a sales tax permit?
To obtain a sales tax permit in New Jersey, you need a federal employer identification number (FEIN) from the IRS.
Is there a fee for a sales tax permit in New Jersey?
No, there is no fee to apply for a sales tax permit in New Jersey.
How long does it take to receive a sales tax permit in New Jersey?
It typically takes around two weeks to receive your sales tax permit after submitting your application.
How often do I need to renew my sales tax permit in New Jersey?
Your New Jersey sales tax permit does not expire, but if there are any changes to your business (such as name, address, or ownership), you need to update your permit.
Do I need a New Jersey tax ID number for my sales tax permit?
A New Jersey tax ID number is not required to obtain a sales tax permit, but you need a federal employer identification number (FEIN).
How do I check the status of my New Jersey sales tax permit application?
You can check the status of your New Jersey sales tax permit application through the New Jersey Business Registration Portal.
Do I need a separate sales tax permit for each location in New Jersey?
No, you only need one sales tax permit to cover all locations in New Jersey.
What types of businesses need a sales tax permit in New Jersey?
Most businesses that make sales in New Jersey need a sales tax permit, including retail stores, restaurants, and online sellers.
What sales are subject to New Jersey sales tax?
Most retail sales in New Jersey are subject to sales tax, as well as some services and tangible personal property.
What is the New Jersey sales tax rate?
The New Jersey sales tax rate is 6.625%.
Are there any exemptions to New Jersey sales tax?
Yes, there are some exemptions to New Jersey sales tax, including certain foods, medicines, and clothing items.
Do I need to charge sales tax on sales made to other states from New Jersey?
Generally, no. You only need to charge sales tax on sales made within New Jersey.
What happens if I operate without a New Jersey sales tax permit?
Operating without a New Jersey sales tax permit can result in penalties and fines.
Can I apply for a New Jersey sales tax permit if I’m not a US citizen?
Yes, non-US citizens can apply for a New Jersey sales tax permit.
Can I temporarily waive my New Jersey sales tax permit if I’m not making sales for a short period of time?
No, you cannot temporarily waive your New Jersey sales tax permit.
How do I cancel my New Jersey sales tax permit?
You can cancel your New Jersey sales tax permit by submitting a request through the New Jersey Business Registration Portal.
Do I need to file a New Jersey sales tax return even if I didn’t make any sales during a particular period?
Yes, you still need to file a New Jersey sales tax return, even if you didn’t make any sales during the period.
What is the penalty for late filing of a New Jersey sales tax return?
The penalty for late filing of a New Jersey sales tax return is 10% of the tax due, up to a maximum of $200.
What is a vendor’s responsibility in New Jersey sales tax law?
Vendors in New Jersey are responsible for collecting sales tax from customers and remitting it to the state.
Can I sell items by auction without a New Jersey sales tax permit?
No, if you make sales in New Jersey, you need a sales tax permit.
What is the deadline for filing a New Jersey sales tax return?
The deadline for filing a New Jersey sales tax return is the 20th day of the month following the end of the reporting period.
What do I do with the sales tax I have collected?
You must remit the sales tax you have collected to the State of New Jersey.
How do I register for both a New Jersey sales tax permit and a New Jersey tobacco tax permit at the same time?
You can register for both a New Jersey sales tax permit and a New Jersey tobacco tax permit at the same time through the New Jersey Business Registration Portal.
Will I receive confirmation of my New Jersey sales tax permit?
Yes, you will receive written confirmation of your New Jersey sales tax permit, which you should keep for your records.
Is it necessary to get a sales tax permit in New Jersey?
Yes, it is necessary to obtain a sales tax permit in New Jersey if you plan to sell taxable goods or services in the state.
Is there a fee to obtain a sales tax permit in New Jersey?
No, there is no fee to obtain a sales tax permit in New Jersey.
Who is eligible to obtain a sales tax permit in New Jersey?
Any individual or corporation that plans to sell taxable goods or services in New Jersey can obtain a sales tax permit.
Can I register for a sales tax permit before I start my business in New Jersey?
Yes, you can register for a sales tax permit in advance of starting your business in New Jersey.
Can I sell in New Jersey without a sales tax permit?
No, you must obtain a sales tax permit before you can sell taxable goods or services in New Jersey.
How long does it take to get a sales tax permit in New Jersey?
It typically takes 2-4 weeks to receive a sales tax permit in New Jersey.
Can I apply for a sales tax permit at any time in New Jersey?
Yes, you can apply for a sales tax permit in New Jersey at any time.
Will I receive my sales tax permit number immediately?
No, you will not receive your sales tax permit number immediately in New Jersey, as it takes 2-4 weeks to process.
How do I add additional locations to my New Jersey sales tax permit?
You can add additional locations to your New Jersey sales tax permit online using the Division of Taxation’s NJ Business Gateway Service.
How do I renew my New Jersey sales tax permit?
Your New Jersey sales tax permit is automatically renewed each year around the date of your initial registration.
Can I update my business information on my New Jersey sales tax permit?
Yes, you can update your business information on your New Jersey sales tax permit online or by mail.
Is the New Jersey sales tax permit number the same as my tax ID number?
While your New Jersey sales tax permit number is connected to your tax ID number, it is a separate identifying number for sales tax purposes.
How often do I need to file sales tax returns in New Jersey?
Sales tax returns are due on a monthly, quarterly, or annual basis, depending on your business activity level.
Can I file my New Jersey sales tax return online?
Yes, you can file your New Jersey sales tax return online through the Division of Taxation’s NJ Sales and Use Tax EZ File system.
What happens if I do not file my New Jersey sales tax return on time?
Late sales tax returns are subject to penalties and interest charges in New Jersey.
Can I pay my New Jersey sales tax return online?
Yes, you can pay your New Jersey sales tax return online through the Division of Taxation’s NJ Sales and Use Tax online payment system.
If I sell in multiple states, do I need to register for a sales tax permit in each state?
Yes, you must register for a sales tax permit in each state where you sell taxable goods or services.
Can I transfer my New Jersey sales tax permit to a new business owner?
No, New Jersey sales tax permits are not transferable to new business owners.
Do I need to have a New Jersey State Tax ID number to obtain a sales tax permit?
No, you do not need a New Jersey State Tax ID number to obtain a sales tax permit, but obtaining one is recommended.
What is the phone number for the New Jersey Division of Taxation?
The phone number for the New Jersey Division of Taxation is 609-292-6400.
Where can I find more information about sales tax in New Jersey?
You can find more information about sales tax in New Jersey on the Division of Taxation’s website or by contacting their office.
How do I report a new location to the New Jersey Division of Taxation?
You can report a new location to the New Jersey Division of Taxation by updating your information online through the NJ Business Gateway Service.
Can I file a joint sales tax return in New Jersey?
No, joint sales tax returns are not accepted in New Jersey.
Is there a penalty if I do not obtain a New Jersey sales tax permit?
Yes, there are penalties for operating without a sales tax permit in New Jersey, including criminal prosecution.
Is there a sales tax on certain food items in New Jersey?
Yes, there is a sales tax on certain food items in New Jersey, such as prepared meals and snacks.

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Conclusion

Obtaining and maintaining a sales tax permit is crucial to running a compliant and successful business. By understanding the requirements and processes in New Jersey, you can ensure that your business collects and remits sales tax correctly and avoids any penalties for non-compliance. Consulting with a tax professional or New Jersey attorney is recommended to ensure that your New Jersey business meets all necessary sales tax requirements.

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