Contractor from New Jersey hired to work for my firm in New York + he is charging me New Jersey tax?

Question

I hired a contractor with a license from New Jersey to do work for my company in New York. He sent me the invoice and he is charging me New Jersey sales tax which is higher, instead of New York sales tax which is lower. Is he trying to squeeze extra money out of me? Is he supposed to charge me New York sales tax as the work was done in New York?

Answer 1

If the contractor is doing all of his work in New York, he should either charge you New York tax or no tax at all. There is no reason for you to pay New Jersey tax, and if you are audited by New York, they will charge you tax for New York as part of the audit. If the contractor is not registered to collect New York tax, you should pay tax on the materials to New York yourself on you sales tax return. I am a retired sales tax auditor of 20 years.

Answer 2

For one thing, He can't charge you taxes for New Jersey if you are not in that State. Another, He has to have a License in New York to do the work there. He can only charge you taxes for where the work is at. I own a drywall business.

Answer 3

Since NJ tax is only 6% and NY tax is 8.5% ( or is it 8.75% now?) I think he's doing you a huge favor.

Answer 4

pay it you can claim it at the end of the year anyway