Key Takeaways

  • All businesses selling taxable goods or services in NJ must complete NJ sales tax registration to obtain a Certificate of Authority.
  • The NJ sales tax permit must be acquired before conducting taxable sales and displayed at the place of business.
  • Registration is done via the NJ Division of Revenue’s online portal and requires key business information like EIN, NAICS code, and entity type.
  • Remote sellers and marketplace facilitators may be required to register due to economic nexus thresholds.
  • Updates to business information must be reported to maintain compliance.

A NJ sales tax ID, also known as a Certificate of Authority, is a requirement of every business in this state. You will need this ID to legally collect sales taxes and must prominently display your ID in your business.

Getting a New Jersey Resale License

If your business purchases items and then sells those items to other people, you can avoid taxes on your purchased items by acquiring a New Jersey resale certificate. The most important step in obtaining your resale certificate is registering your business, which must be done with the New Jersey Division of Taxation.

Once your registration is complete, you will have to fill out some paperwork before you will be given your certificate. After your paperwork has been approved and your certificate issued, you will not need to pay sales tax on the items you purchase for your business with the intent to resell. Your customers, on the other hand, will still need to pay sales tax for their purchases.

To acquire your resale certificate, follow these five simple steps:

  1. Register your business online, by mail, or in person with the Secretary of State of New Jersey.
  2. Get an Employer Identification Number (EIN) from the IRS.
  3. Use your EIN to register with the New Jersey Department of Revenue so that you can pay and collect required taxes. Your EIN will serve as your New Jersey business tax ID.
  4. When purchasing items intended for resale, complete Sales Tax Form ST-3.
  5. Sign your resale certificate, which will then be valid for 90 days.

New Jersey Sales Tax

Two different taxes in New Jersey are related to sales. First is the normal sales tax, which is imposed on sales made in New Jersey. The sales tax applies to the sale of personal property, certain digital items, and enumerated services.

The second New Jersey tax related to sales is the use tax. This tax applies to sales of services or goods that will be used in New Jersey that were not charged the sales tax or were charged a sales tax rate lower than the rate in New Jersey.

How to Register for a NJ Sales Tax ID

You can register for a sales tax ID (Certificate of Authority) online via the New Jersey Division of Revenue's Online Business Registration portal.

Steps to register:

  1. Gather your EIN, business name, address, and NAICS code.
  2. Go to the NJ Business Registration portal.
  3. Complete the online application (Form NJ-REG).
  4. Wait for confirmation and issuance of your Certificate of Authority.

Registration is free and typically processed within a few business days.

What Information Is Required for Registration

When registering, you’ll need:

  • Legal business name and DBA (if applicable)
  • Federal Employer Identification Number (EIN)
  • Business type (e.g., LLC, sole proprietorship, corporation)
  • Mailing and physical business addresses
  • NAICS code (to classify your business activity)
  • Names and addresses of owners or officers

Ensure all submitted information is accurate, as it impacts your compliance status.

Post-Registration Requirements

After receiving your NJ sales tax ID:

  • Display the Certificate of Authority at your business location.
  • Collect sales tax on all taxable sales made in New Jersey.
  • File returns regularly (monthly or quarterly depending on your assigned frequency).
  • Remit collected taxes to the state via the Division of Taxation’s online system.
  • Keep detailed records for at least four years in case of an audit.

Failure to comply can result in fines, interest, and potential license revocation.

Who Needs to Register for NJ Sales Tax

Businesses must complete NJ sales tax registration if they sell tangible personal property, digital goods, or certain services subject to tax within New Jersey. This includes:

  • Brick-and-mortar retailers
  • Online sellers with a physical presence or economic nexus
  • Remote sellers exceeding 200 transactions or $100,000 in sales into NJ annually
  • Marketplace facilitators like Amazon or Etsy if they meet nexus thresholds

You must register before making any taxable sales. Operating without a Certificate of Authority can result in penalties.

Nexus Requirements in New Jersey

Whether out-of-state sellers are required to collect the New Jersey use tax is a complicated issue, and can depend on both state and federal regulations. In terms of federal regulations, the use tax will need to be connected if it can be proven that there is a connection between New Jersey and the sale.

If there is a connection between the sale and the state, the next step will be to decide if the seller actually conducts business in New Jersey. The State of New Jersey requires that retailers that conduct business in the state collect both use and sales tax. Unfortunately, the state has not provided a clear definition of what counts as doing business.

Generally, however, a few groups of sellers are required to collect these taxes, including:

  • Those selling tangible property.
  • Those receiving amusement charges.
  • Those that operate a hotel.
  • Lessors.
  • Anyone selling telecommunication services.

In New Jersey, a seller is considered someone whose business is physically located in New Jersey or a business that has an agent in the state that makes sales. If your business is physically located in New Jersey, and you sell items subject to taxes, you must collect sales tax when an item you sell is delivered in New Jersey or a service you provide takes place in New Jersey.

Remote Sellers & Economic Nexus Rules

Remote sellers must complete NJ sales tax registration if they exceed:

  • $100,000 in gross revenue from sales into New Jersey in the current or prior calendar year, or
  • 200 separate transactions into New Jersey

If either threshold is met, you're required to collect and remit NJ sales tax, even without a physical presence in the state.

Marketplace facilitators (like Amazon) that meet the same criteria must also register and collect on behalf of third-party sellers​​.

Local Tax in New Jersey

Fourth class cities in New Jersey have the right to charge a local tax on certain types of retail sales. Currently, Atlantic City is the only city in New Jersey that imposes this local tax.

The local tax is covered by the person making the purchase. Sellers are not allowed to cover this tax nor advertise to purchasers that they will cover this tax. Local taxes only apply within the territory of the city. If a sale takes place outside of the limits of the city in question, the local tax cannot be imposed. These local taxes can be imposed on nonresidents if the sale took place inside the limits of the city or a service was provided within the city.

Updating or Canceling Your NJ Sales Tax Registration

It’s important to keep your NJ sales tax account up-to-date. You must report the following changes:

  • Business address or ownership changes
  • Business structure modifications (e.g., from sole proprietorship to LLC)
  • Ceasing operations in NJ or closing the business

To cancel your sales tax registration, file the appropriate cessation form with the NJ Division of Revenue. Failing to cancel can result in ongoing filing obligations and penalties.

Frequently Asked Questions

  1. Do I need a NJ sales tax ID if I only sell online?
    Yes, if you meet the physical presence or economic nexus thresholds, you must register even if you only sell online.
  2. Is there a fee to register for a NJ sales tax permit?
    No, registration is free through the NJ Division of Revenue.
  3. How long does it take to get a NJ Certificate of Authority?
    Most online applications are processed within 3–5 business days.
  4. Can I apply for a NJ sales tax ID without an EIN?
    No, you must first obtain an EIN from the IRS before registering with the state.
  5. What happens if I sell before registering?
    Conducting taxable sales before registration is prohibited and may result in penalties and interest on uncollected taxes.

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