New Jersey Sales Tax Filing Update November 2018

What's changing in New Jersey?

On November 1, 2018 Amazon began automatic tax collection for FBA sellers in the state of New Jersey.

  • Walmart began this collection on March 1, 2019.
  • Etsy began this collection on April 1, 2019.
  • eBay will begin this collection on May 1, 2019.
  • You can view more details from the state regarding tax collection by Marketplace Facilitators here.

Do I need to register for a sales tax license (or keep my registration active) in this state?

Sellers with a physical presence in New Jersey need to register for a New Jersey sales tax license. (Note that inventory stored in an Amazon warehouse in New Jersey meets the physical presence criteria.)

Do I need to register if I'm an out-of-state/remote sellers with no physical presence in New Jersey? 

According to the state of New Jersey, after November 1 2018, remote sellers with no physical presence in the state who meet either of the current economic nexus thresholds for NJ (sales of $100,000 in New Jersey or more than 200 transactions in the state in the current or last calendar year) will need to register to collect and remit sales tax in New Jersey.

  • When you register, you will need to visit the state's website and select the option to “Register as Remote Seller Only.”

All sellers (both in-state and remote) who register may not need to file returns. 

  • See below to find the next steps for your particular scenario. 

I'm a remote seller with no physical presence in New Jersey. Do I need to file returns?

If you do not have a physical presence in New Jersey AND:

  • You have met either of the current economic nexus thresholds for NJ (sales of $100,000 in New Jersey or more than 200 transactions in the state in the current or last calendar year)
  • Your only taxable sales into New Jersey are sold through a Marketplace that is collecting and remitting NJ sales tax on your behalf, you'll still need to register (or remain registered). 
  • The good news is, the state says you can request to be placed on a non-reporting basis by completing Form C-6205-ST and mailing it to the Division. 

If you do not have a physical presence in New Jersey AND:

  • You have met either of the current economic nexus thresholds for NJ (sales of $100,000 in New Jersey or more than 200 transactions in the state in the current or last calendar year)
  • All of your sales are tax exempt or sold for resale, you'll also need to register (or remain registered). You can also ask the state to place you on a non-reporting basis by completing Form C-6205-ST and mailing it to the Division.

However:

If you do not have a physical presence in New Jersey AND:

  • You have met either of the current economic nexus thresholds for NJ (sales of $100,000 in New Jersey or more than 200 transactions in the state in the current or last calendar year)
  • You sell on other platforms outside of the Marketplace facilitator (such as your own website, or an e-commerce platform that is not collecting automatically in NJ) you will still need to register as a remote seller and collect and remit sales tax for your non-Marketplace sales.

I'm not a remote seller; I have a physical presence in the state of New Jersey. Do I need to file returns?

If you are an in-state seller or seller with a physical presence in New Jersey AND:

  • All of your NJ sales are sold through a Marketplace that is collecting and remitting NJ sales tax on your behalf OR all of your sales are tax exempt or sold for resale, you'll also need to register (or remain registered), but you can also ask the state to place you on a non-reporting basis by completing Form C-6205-ST and mailing it to the Division.

But, if you are an in-state seller or seller with a physical presence in New Jersey AND

  • You sell on other platforms outside of the Marketplace facilitator (such as your own website, or an e-commerce platform that is not collecting automatically in NJ) you will still need to register for a sales tax license and collect and remit sales tax for your non-Marketplace sales.

I make sales in New Jersey but my Marketplace isn't automatically collecting for me. Do I need to file returns?

The New Jersey technical bulletin allows Marketplace Facilitators to request a delay of up to 180 days to begin automatic tax collection. 

  • If your Marketplace isn't collecting for you as of November 1, 2018, the responsibility to collect is pushed back to the seller until your Marketplace begins collecting.

I still need to file returns in New Jersey. How do I do this without paying double tax on the sales that were collected and remitted by my Marketplace?

 When you file, you'll deduct your Marketplace Sales totals as "Receipts not subject to sales tax." 

  • If you're enrolled in AutoFile for New Jersey, our system will handle these changes automatically.

How does this affect my TaxJar Reports?

Your TaxJar Report for New Jersey has now been updated to reflect the sales that had tax collected and remitted by Amazon and Walmart.

  • You'll see this change in New Jersey sales tax Reports for periods starting in December 2018 and moving forward, depending on the date your Marketplace began collecting as a Marketplace Facilitator.
  • The NJ Report will be updated to reflect the sales that had tax collected and remitted by Etsy beginning April 1, 2019 in May 2019 (when returns for sales after April 1, 2019 are due.)
  • The marketplace sales totals in this Report are now called out in the Marketplace Sales row of the Report.

New Jersey Marketplace Sales

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