New York Tax Exempt – Contractors for Telecommunications Work?
Monday, May 10th, 2010 at
1:48 pm
I’m told contractors doing work for the wireless telecom carriers, Verizon, AT&T, Sprint, T-Mobile etc are not required to charge tax on the associated work. Is there something in the New York State tax code that states contractor work is tax-exempt when performed for telecommunications?
Filed under: Tapit Software
Are you referring to sales tax? If so, refer to page 5 of the fisrt link below. If you are doing mere consulting work, then it is not taxable as a professional service. Otherwise, you probably need to charge tax unless your client claims a sales tax exemption.
Your client MUST present you with an exemption document claiming a sales tax exemption. It is not your decision to not charge sales tax. Your customer must claim the exemption. The second link is the current sales tax rates in New York. The third link is the application to be a registered sales tax vendor.
BTW, when you state that you are a contractor, do you mean that you are in construction. For NYS, a contractor is basically defined as a construction company for sales tax purposes.