Sales Tax Questions NJ Service Providers Ask (and Answers)

Gregory Monaco, CPA
Nov 17
1 min read

Sales Tax NJ Service Providers — What You Need to Know

If you run a business in New Jersey, sales tax can get confusing. Some services are taxable, while others aren’t. Let’s answer the top questions sales tax NJ service providers ask every year.

Q1: Are Professional Services Taxable in NJ?

Generally, professional services like legal, accounting, and consulting are not subject to NJ sales tax. However, if your service includes tangible goods (like printed materials), that portion may be taxable.

Q2: What About Contractors & Maintenance Services?

Contractors often must collect tax on materials and certain labor, depending on the job. Always verify with your CPA or tax advisor before invoicing.

Q3: How Do I File NJ Sales Tax?

You’ll need a Sales Tax Certificate of Authority and must file returns quarterly (or monthly if volume is high). Your bookkeeping software can track taxable vs. non-taxable sales automatically.

NJ service provider reviewing sales tax compliance reports

CPA Tip:

Many sales tax NJ service providers get caught by mixed transactions — like digital downloads, consulting, or bundled services. Separate taxable and non-taxable items on your invoices.