Publication ANJ–10 About New Jersey Taxes:
Out-of-State Sales & New Jersey Sales Tax
Gifts
When a customer purchases a gift in New Jersey and arranges with the seller to deliver the gift to an
out-of-State recipient, generally no New Jersey Sales Tax is due. Such sales are considered out-of-State
sales. However, when a gift is purchased and the seller is directed to deliver the gift to a recipient in
this State, New Jersey Sales Tax is due.
Florist Sales
When a New Jersey florist accepts an order, the florist must charge and collect New Jersey Sales Tax
regardless of where the flowers or gift will be delivered. This holds true even if a second florist located
outside the State must be called for the actual delivery. New Jersey Sales Tax is due because the sale is
deemed to have occurred when the customer placed the original order through a florist in this State.
The florist calculates the Sales Tax on the price of the item plus the charge for any taxable service
provided. For example, service charges, delivery charges, and charges for telephone calls are all part of
the taxable receipt.
On the other hand, when a New Jersey florist receives instructions from another florist for the delivery
of flowers, the New Jersey florist does not charge tax on any monies received from that transaction.
This is true regardless of where the other florist is located.
Drop Shipments
When a retailer accepts an order from a New Jersey customer for an item that the retailer has to
purchase from another supplier, and the retailer instructs that supplier to deliver the item directly to
the retailer’s customer rather than to the retailer, this results in a
drop shipment
. If the supplier is
registered with New Jersey for Sales Tax, the retailer may issue a valid New Jersey Resale Certificate
(Form ST-3) or the Streamlined Sales and Use Tax Certificate of Exemption (Form ST-SST) to the
supplier rather than pay New Jersey Sales Tax on that purchase.
If the retailer is located out-of-State, the supplier may also accept any of the following as acceptable
proof that the sale to the retailer is a sale for resale:
• Purchaser’s out-of-State resale certificate
• Uniform Sales & Use Tax Certificate – Multijurisdiction published by the Multistate Tax Commission
• Resale Certificate for Non‑New Jersey Sellers (Form ST-3NR)
• Streamlined Sales and Use Tax Certificate of Exemption (Form ST-SST)
For more information see Tax Topic Bulletin S&U-6,
Sales Tax Exemption Administration
.