How to invoice in New Jersey

The home improvement registration

Home improvement contractors in New Jersey register with the Division of Consumer Affairs, and the registration number appears on contracts and advertising. Home improvement contracts above a small amount generally have to be in writing with specific terms. Check the Division’s rules for the current dollar amount and for what else must be shown, including on vehicles.

Add the number to every invoice. In Paylark, New Jersey’s licence label reads “License / registration #”, which you can rename to “NJ HIC #”.

Repairs versus capital improvements

New Jersey’s sales tax is 6.625 percent. The state taxes many repair, maintenance and installation services on tangible items, and some services such as landscaping and many cleaning services. A capital improvement to real property is not taxed to the customer, who signs a Capital Improvement Certificate (Form ST-8), and the contractor pays tax on materials. Repairs to the same property are generally taxable.

That difference is a common source of mistakes, so read the Division of Taxation’s contractor guidance before you quote a job.

Licensed trades

Electrical contractors and master plumbers are licensed by state boards, and HVAC and other trades have their own requirements. Put each licence number on estimates and invoices.

Registering, certificates and records

A business that sells taxable goods or services in New Jersey registers with the Division of Taxation to collect sales tax before it starts. Contractors who do capital improvement work keep each signed Form ST-8 in the job file along with the contract, because it is what shows why the invoice has no sales tax on the labor.

The Division of Consumer Affairs lets customers look up whether a contractor is registered, and many homeowners do before they sign. Showing the number clearly on the estimate and the invoice answers that question before it is asked, and it makes it easier for a customer to match the paperwork to the registration.

If you do repairs and improvements for the same customer, send separate invoices for each, so the tax treatment follows the work. A single invoice that blends a capital improvement with a taxable repair is a common source of invoice errors.

A New Jersey invoice

• Business name, address, phone, registration or licence numbers.
• Customer name and the job address.
• Whether the work is a repair or an improvement, when it affects tax.
• Labor and materials separately, with tax on its own line when it applies.
• Due date and how to pay.

Pages for contractors, electricians and lawn care show how each trade invoices. See the pricing or try the demo. Deposits and late fees: check local rules. General information, not legal or tax advice.

Official sources

Check the rules with the people who write them:

• New Jersey Division of Taxation: nj.gov/treasury/taxation
• New Jersey Division of Consumer Affairs: njconsumeraffairs.gov

Rules change and this page is a starting point. Confirm with your state revenue department and licensing board before you rely on it.