News & Insights: dov klein cpa
VENDORS CAUTIONED TO SEPARATE SALES TAX ON ALL TAXABLE TRANSACTIONS
By Dov Klein | November 23, 2016
A recent advisory opinion (TSB-A-16(28)S) issued by the New York State Department of Taxation and Finance (the “Department”) has concluded that a vendor required to collect sales tax may not “absorb” collected sales tax into its hourly rate.
Tax Law also provides that the person required to collect tax is required to separately state the tax on any invoice, or other statement of the transaction provided to the customer.