Do I have to get a certificate of Authority to sell hair in ny
Certificate of Authority needed if selling hair online?
In New York State anybody that sell, tangible. That is stuff you can keep in your arms. Or services, things you do for others, like washing their hair, need a Sales Tax Vendor Registration or Certificate of Authority.
Today, Kerona asked me the question, if she had to get a certificate of Authority if selling hair online in New York?
Obligations as seller of hair
The certificate allows you as a hair business, to collect sales tax on taxable sales. But take care, at the end of the tax period you have to pay the sales tax to the Tax Authorities. My recommendation is to open a separate bank account to keep the received sales tax. Avoid using the Sales tax received for other purposes.
Make sure your bookkeeping keeps tracks of all purchases and sales. I also advice you open an online service account. This allows you to file your tax return in time. It will also provide you the necessary insight and information in time.
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Tax Forms and Filing Information
If your hair and beauty business is registered as a Sales Tax vendor, you need a Certificate of Authority from the New York State Department of Taxation and Finance. This certificate gives you the authority to collect the required sales and use taxes.
The difference between the Sales Tax and Use Tax is:
Sales Tax
– applies to retail sales of certain tangible personal property and services.
Use Tax
– applies if you buy tangible personal property and services outside the state and use it within New York State.
If you make taxable sales, before you receive the Certificate of Authority, your business may be subject to penalties.
Thanks Kerona!
Kerona was very right to ask the question, because if you sell any product and you fail to register you might end up with substantial penalties.
There is no difference made between selling online or through a brick and mortar store.
But what does matter is if you offer services or sell goods.
There is also a difference between New York City and New York State tax. For example:
Beautician services, barbering, and hair restoring are subject only to New York City sales tax, so no State Tax.
Do not let the Tax hurt your business
Always check with a local tax advisor, or the tax authorities your rights and obligations. Legislation and rulings and tariffs are bound to change over time.
For more information visit : https://www1.nyc.gov/nycbusiness/