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Can I collect PayPal information from participants in New Jersey? What are the requirements?

Collecting PayPal Information from Participants in New Jersey

If you are collecting PayPal information from participants in New Jersey, you may be subject to certain requirements.

According to the New Jersey Division of Revenue and Enterprise Services, remote sellers who have economic nexus with New Jersey are required to register with the Division to collect and remit New Jersey Sales Tax [1]. However, remote sellers are not required to collect and remit Sales Tax on the sale of tangible personal property, specified digital products, or taxable services delivered into New Jersey when sold through a marketplace, because the new law requires the marketplace facilitator to collect and remit Sales Tax on all marketplace transactions [1].

It is important to note that PayPal information is not specifically mentioned in the context documents. However, if you are collecting payments through PayPal for sales of tangible personal property, specified digital products, or taxable services delivered into New Jersey, you may be subject to the above requirements.

Requirements for Obtaining an EIN in New Jersey

If you are starting a business in New Jersey and want to obtain an Employer Identification Number (EIN), you are only required to obtain an EIN if the business will have employees, wants to open a bank account, or wants to register a company [3].

Conclusion

Based on the information provided in the context documents, if you are collecting PayPal information from participants in New Jersey for sales of tangible personal property, specified digital products, or taxable services delivered into New Jersey, you may be subject to the requirements for remote sellers to register with the Division of Revenue and Enterprise Services to collect and remit New Jersey Sales Tax. If you are starting a business in New Jersey and want to obtain an EIN, you are only required to obtain an EIN if the business will have employees, wants to open a bank account, or wants to register a company.

Source(s):
Jurisdiction

New Jersey