Collecting NY sales tax - solution?

[FEDUKE404]

Client runs a mid-size (Schedule C) business, which involves consulting for and some production of home furnishings. For anything other than "services" the appropriate NC sales tax is routinely charged, collected, and remitted to NCDOR.

Client now has (word of mouth/recommend) a new customer who resides in NY. I do not know the location, but apparently it is NOT in the NYC area.

Is client under any burden to collect/remit NY sales tax on the items purchased (to include shipping/handling also!)? We've reviewed the online stuff, which tells how to set up a (quarterly?) online account, remit the taxes to NY, etc.

I know this is perhaps a sign of things to come, so it should be noted this is not an "internet" type of purchase. It's only shipment of merchandise to a customer who resides in NY.

Suggestions? Client's best guess was to charge NC sales tax as always, and let the client deal with any potential NY "user tax" issues that might arise.

It should be noted that client is very above-board, and will follow the law, but my client is not excited about having to deal with accounting issues to keep some bureaucrat in NY State appeased.

FE

[BOB W]

Did the customer go to clients location and pick out item(s) to ship to NY? Is shipping by common carrier? Is this a "Resale" purchase?

[FEDUKE404]

Details

Did the customer go to clients location and pick out item(s) to ship to NY? Is shipping by common carrier? Is this a "Resale" purchase?

Customer provides/ships personal item(s) from NY to NC business. Craftsman modifies/adds to item and (normally) charges NC sales tax for the retail price of the "new" materials. (In NC, labor is....not yet!!!....subject to sales tax.) Finished product is shipped back to owner in NY, most likely by FedEx/UPS.

FE

[BOB W]

What does the NY customer do with the finished product? In either case there would be NO NY sales tax if client does not have an office in NY.

[Justataxguy]

NY has a line on the IT201 (NY's "1040") for sales and use tax for taxpayers to report their sales tax on out of state purchases. There is also a formula based on a taxpayer's income if the TP wishes to use that instead. Most clients answer "no" when I ask the sales tax question, but some - particularly those who go to the reservation to buy their smokes - will answer "yes, if thats\ will satisfy them".

[FEDUKE404]

Clarification

NY has a line on the IT201 (NY's "1040") for sales and use tax for taxpayers to report their sales tax on out of state purchases. There is also a formula based on a taxpayer's income if the TP wishes to use that instead. Most clients answer "no" when I ask the sales tax question, but some - particularly those who go to the reservation to buy their smokes - will answer "yes, if thats\ will satisfy them".

The original question was what should the vendor (my client) residing in NC do....not what the customer living in NY might/might not do.

FE

[joanmcq]

The vendor shouldn't have to do anything, the end user would report use tax. The sale is taking place in NC, so the vendor remits to NC.