If you are a New Jersey seller exempt from sales and use tax, and you have sales to New York but the product is picked up in New Jersey, the sales will be allocated as follows: Since the product is picked up in New Jersey, the transaction is considered a New Jersey sale. Therefore, you must report and allocate these sales on your New Jersey state tax return. The location where the buyer takes possession of the product determines the tax jurisdictionFor more detailed information, you can refer to the New Jersey Division of Taxation's guidelines

Question

NJ seller that's exempt from sales and use tax. If sells and delivers to MA, per CBT 100, Schedule J, the sale is not allocable to NJ. So is this allocable to MA and need to file state tax for MA? Thanks.

Forum|Forum|1 year ago
March 5, 2025
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SabrinaD2

If you are a New Jersey seller exempt from sales and use tax, and you have sales to New York but the product is picked up in New Jersey, the sales will be allocated as follows:

Since the product is picked up in New Jersey, the transaction is considered a New Jersey sale.
Therefore, you must report and allocate these sales on your New Jersey state tax return.
The location where the buyer takes possession of the product determines the tax jurisdiction

For more detailed information, you can refer to the New Jersey Division of Taxation's guidelines

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liletrmAuthor

Hi Sabrina,

Thanks for your response!

How about if product is shipped out-of-state, like MA and MD, where customer did not pickup/arrange trucking. From what I understood on CBT100, Schedule J, this is not allocable to NJ since possession is not transferred in NJ. What happens with these sales? Thanks.

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KeshaH

When you ship products to customers in other states and the customer doesn't arrange the shipping themselves, the sales typically aren't allocable to New Jersey because possession isn't transferred in New Jersey. Instead, these sales would generally be subject to the tax laws of the destination states.

If you continue to make sales into other states, you may have tax reporting obligations for the states where you products are being delivered.