What is Use Tax ?
Do you buy any goods or services from out of state vendors and
you are not charged NYS Sales Tax? If the vendor does not have a
connection (nexus) to New York, they are not required to charge
sales tax; however, if the product or service is used by you in
New York, you owe USE TAX.
Click on Use Tax Video
Use tax is due at the same rate as sales tax. It is required to be paid by you directly to the state, or, if your business files sales tax returns, the use tax due should be added. Many businesses are caught on audits owing large amounts of use tax.
Many people do not realize that if sales tax is not charged to them, they may still owe use tax and are required to pay it voluntarily. As you may know, since many large companies are selling goods over the internet (Amazon, Wayfair etc.), they are now collecting sales tax for the state their customer is located in. This is because new laws were enacted to make up for the use tax that was not previously being paid voluntarily by purchasers.
Don't leave your business exposed to Use Tax Audits. You should hire a consultant such as State Tax Audit Representation prior to being audited so you can eliminate your exposure going forward.
Former NYS Tax Department Executive, Brian Gordon is uniquely qualified to handle your Sales Tax audit or other problems. Due to his experience he concludes audits with the best results possible.