The Sales Tax Conundrum
If you're confused about your responsibility when you suspect a customer may be evading sales taxes, you're not alone
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I have a store in the diamond exchange district. I've recently come across some customers who are attempting to avoid state sales tax by having me ship their items out of state. Is this legal, or must I still charge sales tax on these transactions?
--B.D., New York, N.Y.
If your customers have their items shipped outside of New York State, those items are not subject to New York State sales tax. In fact, sales made to out-of-state customers are typically exempt from sales tax (state rules vary).