sales tax between Canadian company doing business in New York

[dell1001]

Ok..here is a good scenario.........a company based in Toronto is working on a project in New York. The Canadian company is buying material from a wholesaler in New York, who is delivering the material to the job site in New York..

The NY wholesaler is charging sales tax to the Canadian company - based on the fact that the Canadian company has no presence/ nexus in New York - they are only working at the job site in New York. They also do not have any certificate of authority #'s for any US state in regards to sales tax.

The Canadian company is stating that they do not have to pay sales tax since they are based in Canada.

who is correct - should sales tax be collected, or is the Canadian company correct in their statement?

[DrByte]

That is not a Zen Cart question.
You need to take that question to your qualified tax accountant or international business law attorney.

[gjh42]

I'm not a tax accountant, but living and doing business in New York, I know that sales taxes are based on the delivery location (shipping address). Any taxable item sold and delivered in New York State incurs sales tax for the delivery location. The nationality of the buyer is irrelevant. If it were being delivered to Canada, that would be a different matter and subject to international rules, whatever they are.