In New York, the onus is on both sellers and buyers to determine whether the products or services they sell, or buy are subject to sales and use tax. As New York State’s rules are nuanced and often complicated, remaining compliant is not an easy task.

For example, under New York law, certain enumerated services are subject to sales tax and services that are not enumerated are typically not taxable. However, there are exceptions (and exemptions) to this and every other rule. While New York sales tax advisory opinions provide examples of taxable and nontaxable services, every new or unique service requires detailed analysis as to its taxability.

Thus, it is important to remain up to date with developments in sales and use tax rules as they change frequently. It is particularly important when buying from out of state sellers that may not properly collect and remit sales tax on sales to its New York State customers. Keeping up with New York State’s sales and use tax law changes can help taxpayers avoid unexpected and very expensive use tax bills years down the line.

For a summary of New York’s 2022 sales tax changes, see here:

Thank you to Farrell Fritz, P.C. associate Colleen Spain for this week’s Tax Tracker post.

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