If you are a New Jersey seller exempt from sales and use tax, and you have sales to New York but the product is picked up in New Jersey, the sales will be allocated as follows:
- Since the product is picked up in New Jersey, the transaction is considered a New Jersey sale.
- Therefore, you must report and allocate these sales on your New Jersey state tax return.
- The location where the buyer takes possession of the product determines the tax jurisdiction
For more detailed information, you can refer to the New Jersey Division of Taxation's guidelines
