Registration requirement for businesses with no physical presence in New York State
On June 21, 2018, the United States Supreme Court ruling in South Dakota v. Wayfair (138 S.Ct. 2080 ) eliminated the prohibition on a state imposing sales tax collection responsibilities on businesses that have no physical presence in that state. Due to this ruling, certain existing provisions in the New York State Tax Law that define a sales tax vendor immediately became effective. Businesses that fall within this definition and make taxable sales in New York State are required to collect and remit New York State and local sales tax, as discussed below.
The term vendor includes a person who regularly or systematically solicits business in New York State by any means and by reason thereof makes taxable sales of tangible personal property to persons in the state. A person is presumed to be regularly or systematically soliciting business in the state if, for the immediately preceding four sales tax quarters:
- the cumulative total of the person's gross receipts from sales of tangible personal property delivered into the state exceeded $300,000, and
- such person made more than 100 sales of tangible personal property delivered in the state.
Therefore, a business that has no physical presence in New York State but meets the requirements outlined above must register as a New York State vendor. Such business is required to register as a vendor immediately if it has not already done so. See N-19-1, Notice Regarding Sales Tax Registration Requirement for Businesses with No Physical Presence in New York State. For registration information, see Tax Bulletin TB-ST-360, How to Register for New York State Sales Tax. To apply, use New York Business Express.
How does a business determine if it meets the registration requirements
To determine if you are required to register, see if you had more than $300,000 in sales of tangible personal property delivered in the state and conducted more than 100 sales of tangible personal property delivered in the state in the immediately preceding four sales tax quarters. The sales tax quarters are:
- March 1 through May 31,
- June 1 through August 31,
- September 1 through November 30, and
- December 1 through February 28/29.
How do I determine what sales are subject to tax, the sales tax rates, and how to file returns and remit the tax due?
See Welcome new vendors for information on these topics and also additional information relevant to newly registered New York State vendors.
What can I do if I should have already been filing?
Under the Tax Department’s Voluntary Disclosure and Compliance Program, eligible taxpayers who owe back taxes and haven't filed related returns may avoid monetary penalties and possible criminal charges by:
- telling the department what taxes they owe;
- paying those taxes; and
- entering an agreement to pay all future taxes.
For more information on New York State's sales tax see Sales tax administrative information.