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  • NJ sales tax on service contracts

    Does anybody have any info on paying sales tax on service contracts? Im talking about if you own or lease a printer and have a contract with a provider for toner/ink, service and parts. Do you pay sales tax on that?
    Any info would be helpful.

  • #2
    Im not sure about NJ, but here in Indiana we do not have to pay tax on those items. We are under a FSMA and everything from Xerox comes tax free. We did have to provide the proper paperwork to them, and it took about 3 months for them to get it right, but in the end they stopped adding tax to our bill and gave us a back credit for what they charged. Just ask your accountant for the proper paperwork you need to submit to whatever company your using.

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    • #3
      Sales tax on copier service is taxable in NJ, has been for many years.

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