The New Jersey (NJ) state sales tax rate is currently 7.0%. Unlike many states, NJ does not allow the imposition of local sales tax—the entire state has a single rate.
There are, however, 32 Urban Enterprise Zones covering 37 economically distressed cities. Certified businesses within Urban Enterprise Zones may purchase many tangible goods and services exempt from sales tax. In addition, qualifying retailers may apply for certification allowing them to charge 50% of the current sales tax rate, or 3.5%.
Amazon.com owns and operates a fulfillment center in New Jersey. This physical presence, or nexus, creates a sales tax obligation for Amazon and many sellers participating in Amazon’s Seller Central and Fulfillment By Amazon (FBA) programs.
Anyone making retail sales in the Garden State, including seasonal or “one-time” vendors, is required to register with the state. New Jersey is a Streamlined Sales Tax state. Out-of-state businesses believing they do not have nexus in NJ must file a paper form NJ-REG.
How to Register
A Business Registration Application must be completed by all businesses required to collect and remit sales tax. Businesses may register online or print forms and mail them to the Division of Taxation.
Businesses selling into multiple states may register with the Streamlined Sales Tax Project.
How to File and Pay
Sales and use tax returns must be filed electronically in New Jersey (since Q3 2005) through the EZ File Systems or by phone. Payments should be submitted electronically by electronic check (e-check), electronic funds transfer (EFT), or credit card.
In New Jersey it is not necessary to file and remit payments for periods in which less than $500 is due, and there is no online provision for zero returns. Other filing requirements:
- Businesses that collected more than $30,000 in sales and use tax during the preceding calendar year must file monthly returns in New Jersey.
- Sellers who remitted less than $30,000 during the preceding calendar year may file quarterly.
Monthly and quarterly remittances are due on or before the 20th day of the month following the end of the reporting period. Additional information.
Avalara Sales and Use Tax Products for New Jersey
AvaTax – AvaTax is a powerful, online sales tax compliance solution that provides all businesses with a level of sales tax automation that until now has been available only to Fortune 500 companies. AvaTax’s transaction-based service model and seamless integration into business applications gives you rapid access to all jurisdiction assignments and real-time sales tax calculations. Cutting-edge technologies and superior processing logic can manage even the most complicated tax issues, such as situs, nexus, tax tiers, tax holidays, exemptions, certificate management and product taxability rules.
TrustFile - Avalara TrustFile provides detailed sales tax reporting for online sellers. Allowing businesses to know exactly where, when and how much to file. Ecommerce business owners can use TrustFile to determine whether or not they are collecting the right amount of sales tax in each individual state, and then store a record of their sales tax history securely in the cloud for free.