New York Sales Tax Rules and Regulations - Taxify

New York State Sales Tax Information

Contact Information

Website: www.tax.ny.gov
Phone: (518) 485-2889

Sales Tax Rate

Base Rate: 4.000%
With Local Rate: 4.000%-8.875%

Triggers for Nexus

Delivery vehicles
Employee
Independent contractors or representatives
Office
Property
Warehousing

New York Filing Deadlines

Monthly

January collections – February 20
February collections – March 20
March collections – April 20
April collections – May 20
May collections – June 20
June collections – July 20
July collections – August 20
August collections – September 20
September collections – October 20
October collections – November 20
November collections – December 20
December collections – January 20

Quarterly

Q1 – June 20
Q2 – September 20
Q3 – December 20
Q4 – March 20

Annual

March 20

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Additional Information

New York is the birthplace of click-through nexus, one of the least favorite and most controversial forms of nexus. The state is aggressive with their sales tax policies so it is important to know when you, as an ecommerce retailer, will need to register with the state and how to go about doing so.

When making sales in New York that will be subject to sales tax, you must register with their Tax Department and obtain a Certificate of Authority. The Certificate of Authority is New York’s version of a sales tax license and it gives you the “authority” to collect tax on your sales. If you expect to make taxable sales in New York State, you must register with their Tax Department at least 20 days before you begin business.

Types of Certificates of Authority

The Tax Department issues two types of Certificates: regular and temporary. The type of Certificate you will need is based on the anticipated length that your business activities will last within the state. The same form and application process is used for both types of certificates; however, a temporary certificate is issued with a beginning and ending date.

A regular Certificate of Authority should be applied for if you have nexus within the state and will be making taxable sales. Please note that if you plan on making sales at a show or other event, such as a craft show, antique show, flea market, or sporting event, you should still apply for a regular Certificate, even if your sales are only on an occasional basis.

If you expect to make taxable sales in New York State for no more than six-months within any 12-month period, you should only apply for a temporary Certificate.

To request a temporary Certificate, you must indicate when you expect to begin and end your business operations. This scenario is less likely as an ecommerce retailer so confirm with the state if this is the Certificate you think you should apply for.

Once you receive your Certificate, you are considered to be in business even if you never make a sale. Therefore, you must file your sales tax returns on time, even if you have no taxable sales. The state insists it will charge penalties for late filing even if you owe no tax.

If you are still unsure of whether or not you should apply for a Certificate of any kind with the state of New York, please refer to their website for more details. When in doubt, it is always best to ask.

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