Hunzinger Accounting & Financial Solutions

They tax it there, but not everywhere, New York, New York

Sales tax is most commonly associated with items purchased in a store or the extra line item on your restaurant tab. Many people starting a new business don’t realize that it’s not quite that simple, especially in New York City. There are in fact a whole host of things that are not subject to sales tax. But more importantly, there are many services that are subject to sales tax.

We have had several clients start businesses without realizing they have overlooked this important detail. In NYC certain services are subject to a city sales tax, including but not limited to beautician services, tanning, manicure/pedicure, certain exercise classes and, of all things, credit rating services. New York State requires you to register your business for sales tax prior to collecting it. If you don’t register and don’t collect sales tax, you will be responsible for the taxes that you didn’t collect, along with interest and penalties. This is another reason it’s important to give us a call when you start a new business, or offer a new product or service.

For a complete list of what is and what isn’t subject to sales tax, refer to the link below. This list contains many asterisks so it’s important to read the fine print.

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