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  • 1.  Sales Tax

    Bronze Most Valuable Member
    Posted 01-18-2021 12:10 PM
    Hi All:

    I have a client that rents a space in Staten Island and the services he provides are gymnastic lessons (private & classes) and cheer coaching. If he intends to sell t-shirts, leotards, competition outfits and each item is under $110.00 does he have to register for sales tax?

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    Joanne Paniccia CPA
    JL Paniccia, LLC
    Commack NY
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  • 2.  RE: Sales Tax

    Posted 01-22-2021 06:53 AM

    Theoretically yes. Especially if they want to buy them tax free because you technically need to supply a resale
    certificate to purchase. 

    Also, I've said before to others, when in doubt, just csll the Nys sales tax hotline, note who you spoke to, time and date, and if they advise against it, you have proof if things go south in the future. 



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    Stephen Hatzistefanidis
    KONSTANTINOS HATZISTEFANIDIS, CPA
    Astoria NY
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    Original Message


  • 3.  RE: Sales Tax

    Platinum Most Valuable Member
    Posted 01-23-2021 04:06 PM

    Yes,  your client needs to register for NYS sales tax, even if he won't owe any sales tax on the returns.

     

    NYS Publication 718-C is attached.  Items not eligible for the exemption include "Costumes or rented formal wear."  Are competition outfits considered costumes?   https://www.tax.ny.gov/pdf/publications/sales/pub718c.pdf

     

    Ruth

    Ruth A. Sattig Betz, CPA

    516-249-1919

    Fax 516-249-4450

    Please reply to Ruth@RSBetzCPA.com

     

    Visit our website www.rsbetzcpa.com .

     

    Connect with me on LinkedIn

     

    Any tax advice contained in this email, including attachments, cannot be used by any taxpayer for the purpose of avoiding penalties that may be imposed on the taxpayer.

     




    Original Message


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The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.