“I sell hand-crafted products online. Do I need a Sales Tax Certificate?” - S.O. New Business Owner

Do you need a Sales Tax Certificate before you operate your business in NY? The answer may surprise you.

The common misconception is that you have to get a NYS Tax Certificate of Authority only if you sell goods in the state. This is not true‼

If you sell certain services out of certain places, you may also have to register for a Certificate. Also, if you sell certain goods out of certain places, you may be exempt from getting a Certificate. Some foreign businesses located outside of NY also need to get a Certificate.

The rules are convoluted and complex to say the least!

For example, if you sell baked goods out of your home you may not have to get a Certificate. But if you sell baked goods from a brick-and-mortar location, you may have to get one.

If you provide the service of repairing automobiles, appliances, radio, or television sets, you may need a Certificate. But if you provide accounting services, you may not.

Why the distinctions? What's the difference? Nobody really knows!

But the fact is if you don't do it correctly for your business, there can be huge penalties to pay. In some cases, the state can charge you $500 for the first day you did business without having a valid Certificate, plus up to $200 per day for each day thereafter.

If all of this is confusing to you, you're not alone. If you want to figure this out for your business, contact me today. Let's tackle the obstacles ahead together!