Is business registration required for Trade Show, Seasonal, and Occasional Vendors?
Persons regularly engaged in the business of selling taxable tangible property, taxable services, or prepared foods are considered to be sellers under the New Jersey Sales Tax law and are required to register and collect and remit sales tax. Registration is required even if the sales are only made on a seasonal basis (e.g., Christmas trees) or if they are only made occasionally (e.g., Trade Show Vendor who periodically sells items at shows) during the year.
Also see publications ANJ-11, Arts & Crafts Businesses and New Jersey Sales Tax 290kb and ANJ-15, Flea Markets & New Jersey Sales Tax. 390kb
Do I need to register my business if I will only conduct business on a temporary basis?
There are no special provisions for temporary vendors. Once registered, you must file all required returns until you properly end your tax registration with New Jersey. For details, see Technical Bulletin TB-78(r) Nexus for Sales and Use Tax 49kb
What if I don’t have a shop?
Sellers doing business in New Jersey must comply with the State’s tax laws whether they sell their products from shops, at flea markets, at craft shows, by mail, or from home.
I have a business in another state and am coming to New Jersey for a trade/craft show. Do I have to register?
Anyone who makes retail sales in this State, including sales at flea markets, craft shows, or trade shows, is doing business in New Jersey and must comply with the State’s tax laws. New Jersey law requires all vendors, even seasonal businesses and “one-time” vendors, to register with the State for tax purposes at least 15 business days before starting business, and to collect New Jersey Sales Tax on all sales of taxable tangible personal property or services.
Why do I have to collect New Jersey Sales Tax?
A person who has physical presence in New Jersey and sells taxable items or services must register and collect and remit Sales Tax whenever such sales are completed by delivery of the item(s) to a New Jersey location or when performance of the service is within this State. Additional information is available in Technical Bulletin TB-78(R), Nexus for Sales and Use Tax. 49kb
When are Sales and Use Tax returns due?
New Jersey Sales and Use Tax returns are due quarterly, on or before the 20th day of the following month. For example, the return for the first quarter, which ends on March 31st, is due on April 20th.
Returns can be filed online.
|Quarterly Tax Return Due Dates|
|PERIOD||MONTHS IN PERIOD||DUE DATE|
|1st Quarter||January - March||April 20th|
|2nd Quarter||April - June||July 20th|
|3rd Quarter||July - September||October 20th|
|4th Quarter||October – December||January 20th|
If you’re a seasonal business, you’ll tell the Division what months you plan on doing business when you complete your registration. You only need to file for the periods you indicate on your business registration. Even if you’re active for only one month during a quarter you’re still required to file a quarterly return for that period.
What is the New Jersey sales tax rate?
The State of New Jersey’s Sales and Use tax rate is 6.875%. However, there are exceptions to this Statewide rate. In addition, local sales taxes are imposed on sales of certain items sold in Atlantic City and Cape May County. For additional information, see Tax Topic Bulletin S&U-4, New Jersey Sales Tax Guide. 366kb
View a sales tax collection schedule (ST-75) 49kb for the current State Sales and Use tax rate.
What is a casual sale?
"Casual sale" means an isolated or occasional sale of an item of tangible personal property or a specified digital product by a person who is not regularly engaged in the business of making retail sales of such property or product where the item of tangible personal property or the specified digital product was obtained by the person making the sale, through purchase or otherwise, for the person's own use. Sales by persons making isolated or occasional sales of items of tangible personal property which were purchased by them for their own use are considered to be “casual sales” and are not subject to tax. Examples of casual sales are one-time sales of household items, children’s toys, tools, etc. at a yard sale, garage sale, or through a classified ad.
How do I register my business?
File a Business Registration Application (Form NJ-REG) to register with the State to collect/remit New Jersey taxes such as sales tax or employee withholdings, and to obtain a New Jersey tax identification number. You can register online or file a paper application.
For additional information on registering your business visit the Division of Revenue’s New Jersey Business Gateway Services Web site.
How can I show proof that I am authorized to collect Sales Tax in New Jersey?
If the application indicates that the business will collect Sales Tax or purchase materials for resale, a New Jersey Certificate of Authority (Form CA-1) for Sales Tax is sent to the seller, or can be printed at the end of the online registration process. This certificate provides authorization from the State of New Jersey to collect Sales Tax and to issue or accept exemption certificates, and it must be displayed where your customers can see it at all times.
If I don’t have a Certificate of Authority, how can I show proof that I am registered to conduct business in the state of NJ?
A New Jersey Business Registration Certificate can be printed out from the online registration system 1-2 business days after the registration application has been submitted.
Does registering with the State of New Jersey make my business responsible for collecting Sales Tax on Web-based sales?
Once your business has Nexus for Sales Tax in New Jersey, all of your retail sales made in New Jersey, or delivered to New Jersey are subject to New Jersey Sales Tax.
How do I add (end) a specific tax eligibility once my business is registered?
You can add or end eligibility for specific taxes either online or by filing a paper Form REG-C-L, 478kb Request for Change of Registration Information. The procedures to be followed to end your business depend upon the type of business entity you have (sole proprietorship, partnership, corporation, etc.) and the taxes for which you are registered. For details, please see publication ANJ-13, Ending Your Tax Registration in New Jersey. 278kb
Note: New Jersey’s procedures for corporate dissolution require that all documents for dissolution or withdrawal, including the request for the tax clearance, be submitted together as a package to the Division of Revenue. For additional information, including the necessary forms and instructions, go to the Division of Revenue’s website.
If a promoter sells tickets to their event are they required to register and collect sales tax?
Under the Sales and Use Tax Act, any charge for admission to an entertainment or amusement event of more than 75 cents is subject to sales tax. Examples of taxable admissions include movies, shows, concerts and sports events that take place in New Jersey, as well as amusement rides.
Promoters and other persons who sell taxable admission tickets must register as vendors with the Division of Taxation. To register, promoters and other ticket sellers, including ticket sales agents, must complete an Application for Registration (Form NJ-REG). Registered vendors receive and are identified by a Certificate of Authority (Form CA-1) to collect New Jersey Sales Tax. A promoter is anyone who holds, produces or sponsors an event the admission to which is subject to tax. A ticket sales agent is any person who sells tickets or receives admission charges for a promoter.
A promoter or a ticket sales agent can be a private profit-making or nonprofit entity or a public entity under the law. Additional information is available in Technical Bulletin TB-12, Ticket Admissions, Sellers and Promoters. 41kb
If the event is held by or benefits a non-profit or charity, are the ticket sales taxable?
Admission charges for events held to benefit a charity or similar nonprofit organization are only exempt from Sales Tax if certain requirements are met. If the exempt organization is an IRC 501(c)(3) they must have a valid New Jersey Exempt Organization Certificate (Form ST-5). All of the proceeds from the admissions must exclusively benefit the exempt organization. The exemption does not apply to admission charges for: carnivals, rodeos or circuses in which a professional performer or operator participates for compensation; and certain athletic competitions. There are additional requirements that must be satisfied if the event is run by a promoter. For details, please see Technical Bulletin TB-75, Admission Charges for Events Benefitting Non-Profit Entities. 78kb
As an out of state business, is my income taxable to New Jersey for sales from New Jersey Sources?
If you are a Sole Proprietorship or Single Member LLC that has income from sources in the State of New Jersey, and your income from everywhere was more than $10,000 (single) or $20,000 (Married), you must file a New Jersey Non-Resident Income Tax Return, Form NJ-1040NR.
For New Jersey Gross Income Tax purposes, every Partnership or Limited Liability Company (LLC) that has income from sources in the State of New Jersey must file the New Jersey Partnership return, Form NJ-1065.
Every foreign corporation which derives income from this State is required to file a Corporation Business Tax return.
Note: A foreign corporation having employees or Representatives at trade shows in New Jersey exhibiting samples, or handing out brochures, or providing information, or taking orders, or selling products on hand, satisfies the physical presence requirement and therefore nexus is established for New Jersey Sales Tax and Corporation Business Tax.
If the only activity in New Jersey is trade show solicitation, then the net income of the foreign corporation is protected by Federal PL 86-272, and the foreign corporation will be subject to the minimum Corporation Business Tax or the Alternative Minimum Assessment (AMA). Any activity beyond PL 86-272 protection will require a tax on the net income of the foreign corporation. For more information, see Technical Bulletin TB-79(R), Nexus for Corporation Business Tax. 49kb
Starting a business in NJ:
Registering a business in NJ:
I have a business in another state:
If I have additional questions relating to trade show attendance as it relates to taxes and business registration, who can I contact?