New York Sales & Use Tax

 

 

 

 

 

 

 

The obligation to collect New York sales and use tax is determined by your business's nexus. Your physical nexus is determined by the activity or physical presence within the state. Reaching a sales or transactions threshold can create economic nexus obligations requiring your business to collect and remit sales tax within the state.

 

Vendors are required to collect sales tax from their customers in the case of having a gross revenue of more than $500,000 in conjunction with more than 100 individual transactions. To learn more, read our article on how economic nexus affects your business.

 

Your business has physical nexus if it has any of the following items within the state of New York:

✅ Physical offices or storefronts 
✅ Employees reside in the state
✅ Inventory in storage or warehouse

✅ Taxpayer-owned vehicle product transport

✅ Contractors or other third-party representation operating within the state

✅ Ownership of personal property

 

 

As a destination-based sales tax state, New York requires sellers to charge the rate at which the item is being delivered in. This may include state, county, city, and district tax rates.

 

Sales tax returns are dependent upon the state's due dates and the vendor's filing frequency. If the seller exceeds the economic threshold, they are liable to file on a monthly basis. If the seller does not exceed the threshold, then returns could be due quarterly or annually. 

 

New York requires vendors to file and remit all sales tax payments online at the New York Department of Taxation and Finance.

 If filing your New York sales tax nexus is too complicated, or you don't have the bandwidth to do so, TaxConnex can register, file and remit for you. Check out the TaxConnex Difference to learn more.