How do businesses determine which products and services are taxable in New Jersey?

In New Jersey, most tangible goods, like electronics and furniture, are taxable, but services are taxed selectively. For example, telecommunications services are taxable, while professional services like legal advice are not.

To ensure compliance, businesses should classify their products and services accurately, referencing the New Jersey Division of Taxation’s guidelines. Misclassifying a taxable item can lead to penalties, so understanding the rules is crucial.