If you are registered for sales and use tax purposes in New York State, you must file sales and use tax returns. This bulletin explains the sales tax filing requirements for quarterly, part-quarterly (monthly), and annual filers, including the E-file mandate. (It may also be helpful to read Tax Bulletin Do I Need to Register for Sales Tax? (TB-ST-175).)
Your sales and use tax return
Your sales and use tax return is a summary of your business activity, including:
- gross sales;
- sales subject to tax (taxable sales);
- purchases or uses on which you are required to pay use tax;
- the total amount of credits you are claiming on the return;
- sales tax, use tax, and any special taxes you collected or were required to collect; and
- the amount of sales and use tax you must pay with the return.
How frequently you must file sales tax returns depends on the amount of your taxable sales (and purchases subject to the use tax), or the amount of tax due. Even if your business did not make any taxable sales or purchases during the reporting period, you must file your sales and use tax return by the due date.
The chart below summarizes which sales tax form to file. The forms and schedules are further explained on the following pages of this bulletin and in the links provided.
|You must file:||Form and schedules||Filing period
Prompt Tax generally if your annual sales and use tax liabilities are greater than $500,000.
(For more information about PrompTax, click here.)
|Quick Guide for Prompt Tax Sales Tax (Click here for a chart summarizing return and payment periods as well as due dates and taxpayer action dates.)
The Tax Department requires certain annual, quarterly and part-quarterly (monthly) sales tax filers to:
- Web File their sales tax returns; and
- make the payments associated with those returns by electronic withdrawal from their bank accounts.
The e-file mandate applies to annual, quarterly and monthly sales tax filers who meet these three conditions:
- don’t use a tax preparer to prepare sales tax returns;
- use a computer to prepare, document, or calculate returns; and
- have broadband Internet access.
See Sales Tax Web File on our Web site. You will need to complete a one-time registration process through Online Services before you can Web File.
However, if you file Form ST-101.5-ATT, Annual Schedule N-ATT - Taxes on Parking Services in New York City, Form ST-100.5-ATT, Quarterly Schedule N-ATT - Taxes on Parking Services in New York City, or Form ST-810.5-ATT, Quarterly Schedule N-ATT for Part-Quarterly (Monthly) Filers - Taxes on Parking Services in New York City, you cannot Web file your return and the mandate does not apply. If you are required to file any of these schedules, you must continue to file paper returns. If these forms become available for Web File in the future and you meet the e-file mandate conditions stated above, you will be required to Web File your return.
How your filing frequency is initially determined
You will automatically be classified as an annual filer if, on your registration application, you:
- indicate that you do not expect to pay or collect any sales or use tax (for example, you are registering to accept exemption certificates), and
- describe your major business activity as manufacturer or wholesaler.
The annual return, Form ST-101, New York State and Local Annual Sales and Use Tax Return, covers the period March 1 through February 28 (29 in a leap year). Since sales tax returns are generally due within 20 days after the end of the reporting period, annual returns are due by March 20 each year.
If you do not qualify to file annually, you will be classified as a quarterly filer when you first register for sales tax purposes.
- Use Form ST-100, New York State and Local Quarterly Sales and Use Tax Return, to file your quarterly return.
- The reporting periods covered by quarterly returns are March 1 through May 31, June 1 through August 31, September 1 through November 30, and December 1 through February 28 (29 in a leap year).
- Quarterly returns are due no later than 20 days after the end of the quarter to which they relate.
Your filing frequency may change
As explained below, your filing frequency may change from annual to quarterly (depending on the amount of your total sales or tax due) or from annual or quarterly to part-quarterly (depending on the amount of your taxable sales). The Tax Department will make a reasonable effort to notify you of the change in your filing frequency. However, it is your responsibility to report any changes in your status to the Tax Department and to file your returns properly, whether the Tax Department notifies you or not.
Annual – If you are not currently an annual filer, the Tax Department may later reclassify you as an annual filer if your total tax due for the four most recently filed quarterly periods does not exceed $3,000. The Tax Department will mail you a notice indicating the change.
Annual to quarterly – If you are currently an annual filer, the Tax Department may later reclassify you as a quarterly filer if, during your annual filing period, your total sales and use tax due exceeds $3,000. The change to quarterly filing takes effect the sales tax quarter following the annual period in which your total sales and use tax exceeds $3,000. The Tax Department will mail you a notice indicating the change.
Annual to part-quarterly (monthly) – If you are currently an annual filer, you may be later reclassified as a part-quarterly (monthly) filer if during your annual filing period, the combined amount of your taxable sales (and purchases subject to use tax) is $300,000 or more. The change to monthly filing takes effect the first month following the annual period in which your taxable transactions equal or exceed $300,000. The Tax Department will mail you a notice indicating the change.
Quarterly to part-quarterly (monthly) – If the combined amount of your taxable sales (and purchases subject to use tax) during any quarter is $300,000 or more, you must begin filing monthly returns. The change to monthly filing status takes effect the first month following the sales tax quarter in which your taxable transactions equal or exceed $300,000 in a quarter. The Tax Department will mail you a notice indicating the change.
You must continue to file returns monthly until your taxable sales are less than $300,000 in a quarter for four consecutive quarters, at which time you may contact the Tax Department to request a change to quarterly filing status.
If you are a distributor of petroleum products, you must change to monthly filing if your sales of petroleum products equal or exceed 100,000 gallons in any quarter. The change to monthly filing takes effect the first day following the quarter in which your sales of petroleum products equal or exceed 100,000 gallons. It is your responsibility to report this change to the Tax Department and file a return for the first month you are required to file monthly. You must continue to file returns monthly until your sales of petroleum products total less than 100,000 gallons for four consecutive quarters, at which time you may contact the Tax Department to request a change to quarterly filing status.
If you are required to file monthly returns:
- For the first two months of the quarter, file Form ST-809, New York State and Local Sales and Use Tax Return for Part-Quarterly Filers.
- For the third month, file Form ST-810, New York State and Local Quarterly Sales and Use Tax Return for Part-Quarterly Filers, to report sales and purchases for the entire quarter and to claim any amounts you remitted on the part-quarterly sales tax returns (Form ST-809) you filed for the first two months of the quarter.
A monthly return is due no later than 20 days after the month to which it applies.
To report or request a change in filing status, contact our Sales Tax Information Center.
Other forms you may have to file
In addition to filing the main return, you may be required to complete one or more schedules that are used to report certain transactions. Schedules A, B, FR, H, N, P, T, and W must be included with your return under certain conditions, as described below. There are three versions of most of these schedules: quarterly, part quarterly (monthly), and annual. Although similar, each schedule is specific to an associated tax return. For example:
Form ST-100.2, Quarterly Schedule A, is filed as an attachment to Form ST-100;
Form ST-810.2, Quarterly Schedule A for Part-Quarterly Filers, is filed as an attachment to Form ST-810; and
Form ST-101.2, Annual Schedule A, is filed as an attachment to Form ST-101.
The following information describes when you must file a schedule mentioned below with your return.
- File Schedule A to report tax and taxable receipts from sales of food and drink (restaurant meals, takeout, etc.) and from hotel/motel room occupancy in Nassau or Niagara County, as well as admissions, club dues, and cabaret charges in Niagara County.
- File Schedule B if you: (1) provide nonresidential utility services in certain counties where school districts or cities impose tax, (2) provide residential energy sources and services subject to local taxes, (3) are a vendor supplying the above services or are billing tenants on a sub-metering basis, or (4) purchased any of the above without payment of sales tax (under direct payment permits, exempt purchase certificates, or otherwise). (For a list of residential rates, see Publication 718-R, Local Sales and Use Tax Rates On Residential Energy Sources and Services.)
- File Schedule FR if you make retail sales of qualified petroleum products or if you are reporting use tax on your use of qualified petroleum products taken from inventory.
- File Schedule H if you make retail sales of clothing and footwear eligible for exemption from New York State and some local sales and use tax (see Publication 718-C, Sales and Use Tax Rates on Clothing and Footwear).
- File Schedule N if you provide certain services subject to sales tax in New York City. See Publication 750, A Guide to Sales Tax in New York State, for a list of services. In addition, use Schedule N-ATT if you are a provider of parking services in New York City.
- File Schedule P if you are a vendor registered to make PrompTax payments of sales and use tax.
- File Schedule T to report the sales tax due or the sales of telephone services, telephone answering services, and telegraph services within certain counties, school districts, and cities.
- File Schedule W if you made purchases eligible for the Qualified Empire Zone Enterprise (QEZE) sales and use tax credit. For more information in determining if you meet the qualifications, see Quarterly Schedule W Instructions.
See our Sales Tax Forms Web page for a complete listing and links to download the sales and use tax forms.
When to file
Sales tax returns generally must be filed no later than 20 days after the end of the period to which they relate. If you do not file your return and pay any tax due on or before the due date, you will be subject to penalties and interest.
Certain large vendors must remit a portion of the state and local sales and use tax due for each period (including prepaid sales and use taxes due on petroleum products) by electronic funds transfer (EFT) or certified check. We will notify you if you must make this type of payment.
Taxpayers may also voluntarily enroll to pay by EFT. For more information about EFT, call (518) 457-2332 or visit the PrompTax Program page on our Web site.
Penalties and interest for failure to file and pay tax
If you file your return late, don’t pay the full amount due, or both, you owe penalty and interest, and cannot claim a vendor collection credit (see Tax Bulletin Vendor Collection Credit (TB-ST-925). Penalty and interest are calculated on the amount of taxes due. The minimum penalty for late filing is $50, even if no tax is due for the reporting period.
Interest is due on any amount not paid when due and accrues from the due date of the return to the date the tax is paid. Interest is compounded daily, and the rate may be adjusted quarterly. You can use the online Penalty and Interest Calculator to determine the amount of penalty and interest due. In addition, various civil and criminal penalties may apply if you do not comply with your responsibilities to collect and remit sales tax (see Tax Bulletin Sales and Use Tax Penalties (TB-ST-805)).
Note: A Tax Bulletin is an informational document designed to provide general guidance in simplified language on a topic of interest to taxpayers. It is accurate as of the date issued. However, taxpayers should be aware that subsequent changes in the Tax Law or its interpretation may affect the accuracy of a Tax Bulletin. The information provided in this document does not cover every situation and is not intended to replace the law or change its meaning.
References and other useful information:
Tax Law: Sections 1136; 1137; 1142; 1145; 1801; and 1817
Regulations: Sections 533.3; 533.4; and 536.1
Publication 20, New York State Tax Guide For New Businesses
Publication 718, New York State Sales and Use Tax Rates by Jurisdiction
Publication 718-C, Sales and Use Tax Rates on Clothing and Footwear
Publication 718-R, Local Sales and Use Tax Rates On Residential Energy Sources and Services
Publication 750, A Guide To Sales Tax In New York State
Publication 774, Purchaser’s Obligations to Pay Sales and Use Taxes Directly to the Tax Department Questions and Answers
Do I Need to Register for Sales Tax? (TB-ST-175)
Reciprocal Credit for Sales or Use Taxes Paid to Other Taxing Jurisdictions (TB-ST-765)
Sales and Use Tax Penalties (TB-ST-805)
Vendor Collection Credit (TB-ST-925)