Answers to Three Popular New York Sales Tax Questions People Ask
Compliance with New York sales and use tax is a fundamental operation for businesses that offer products and services in the state. As a sales tax consulting firm, we get lots of questions from owners and CPAs about how this tax works and opportunities for cost savings. We answer your three most popular New York sales tax questions below, which include:
- What items are exempt from sales tax in New York?
- Can you deduct New York sales tax as a business expense?
- What are the due dates for New York’s quarterly sales tax payments?
1. What Items Are Exempt from Sales Tax in New York?
New York broadly taxes the sale of many different types of tangible personal property and services. However, the state also offers New York sales tax exemptions on certain items. For example:
- Admission charges
- Some food and drinks
- Medicine and feminine hygiene products
- Certain items of clothing
- Manufacturing expenses
- Precious metal bullion
- Capital improvements
- Packaging materials
For more detailed information on New York’s sales tax exemptions, see Tax Bulletin ST-740. Then, contact our office for a free consultation.
2. Can You Deduct New York Sales Tax as a Business Expense?
Generally, the IRS allows businesses to deduct from their taxable income the costs of ordinary and necessary purchases they make in the year for things like supplies and inventory. The costs of these deductible business expenses include amounts paid for New York sales tax. See IRS Publication 535, page 20.
For questions about whether a particular item qualifies as a deductible business expense, we recommend a consultation with your CPA.
3. What Are the Due Dates for New York’s Quarterly Sales Tax Payments?
Quarterly payments of New York sales tax are due when you file your return to the New York Department of Taxation and Finance, which is due within 20 days after the quarter ends. The New York quarterly sales tax filing periods are:
- March 1 to May 31
- June 1 to August 31
- September 1 to November 30
- December 1 to February 28 (or February 29 in a leap year)
Failure to file and pay New York sales tax within these periods could lead to the assessment of interest and penalties. See Tax Bulletin ST-275 for additional details.
Schedule a Free Consultation for All Your Sales Tax Help
Knowing how New York sales tax applies to your business operations is crucial for cost savings with the use of available exemptions, business expense deductions, and general compliance when reporting to the NYDTF. Still, sales tax issues are bound to arise for businesses in New York, including audits, assessments, and uncertainty about the application of New York’s sales tax rules. Our team of sales tax professionals is available on these occasions to offer support and guidance through various administrative processes necessary for ensuring you don’t pay more than you should in New York sales tax.