If you are in the process of acquiring a business, it is highly recommended that you contact the New York Department of Taxation and Finance to inquire about the current status of the potential acquisition. Once the business is purchased, you will be responsible for all debts being sold and used in New York City. You can take the artwork home to New York, where the combined national and local VAT rate is 8%. The $25 surcharge paid by the Seller of State A and transferred to you does not match the sales and use tax collected here in New York and therefore does not meet the criteria for a mutual credit. As a result, $40 ($500 x 8%) is due in New York State and the local use tax on the artwork is due and no reciprocal credit is allowed for the supplement paid in State A.