No Sales, Use Tax On R&D For Out-Of-State Parent, NY Says

Law360, New York (November 1, 2013, 3:55 PM EDT) -- A New York company that performs research and development for its out-of-state parent and receives reimbursements doesn't have to pay sales and use tax since the work is sent out of state, says a state Department of Taxation and Finance advisory opinion issued Friday.

The department says that since sales tax is a destination tax, the jurisdiction where the products will ultimately land will have a claim to any sales or use taxes, not New York.

“We conclude that, even if the service is a taxable...
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