If a New Jersey resident works for himself and develops software for clients around the country, should he charge sales tax?
2006-07-05 01:24:30 · 2 answers · asked by corus_corvax 2 in Business & Finance ➔ Taxes ➔ United States
No. Why would you charge sales tax? You're not paying it to the state. The only time you charge it as an independent contractor is when the you have to pay it to the state.
I'm a retired business consultant in NJ and contracted with lots of clients in other states.
2006-07-05 01:31:06 · answer #1 · answered by scubalady01 5 · 0⤊ 0⤋
If the sale took place in another state, no sales tax is due. However, if your state tries to claim that you should have charged it, you may expend much effort trying to avoid it - or be liable for paying taxes yourself which they claim you should have collected. So be careful.
2006-07-05 08:27:04 · answer #2 · answered by nkasoff 3 · 0⤊ 0⤋