If you make sales of products or services that are subject to state sales tax in New York you need to register as a sales tax vendor with the State of New York. As indicated by the New York State Department of Taxation and Finance, what you sell determines whether you have to register. If your business is located in New York State and the products or services you sell are taxable, it doesn’t matter whether you sell them in a retail location, by mail, Internet, or occasionally in a craft fair. If the products are taxable, you must register and collect and pay sales tax.
You may be required to register for and collect sales tax in New York even if your business is located outside the state. According to the New York State Department of Taxation and Finance, if you make sales of taxable products in New York State and you deliver the products in your own vehicles, you are considered to have sufficient connection to New York State and you must register for and collect sales tax. And if you have employees, salespersons, agents or representatives who solicit sales of taxable products or services in New York, you must also register for and collect sales taxes.
If you make sales in New York State and deliver the products through the postal service or a common carrier, you are not considered to have sufficient connection to New York and are not required to register for and collect sales tax. In that case, your customers would be required to report and pay the sales or use tax in New York.
The Quick Reference Guide for Taxable and Exempt Property and Services on the New York State Department of Taxation and Finance website can help you determine whether your products or services are subject to state sales tax in New York.
You need to register with the State of New York in order to obtain a Certificate of Authority. This certificate enables you to collect sales tax and to issue and accept New York State sales tax exemption certificates. There are two types of Certificates of Authority – regular or temporary, depending on the expected duration of your taxable sales. A temporary Certificate of Authority applies when you expect to make sales during only two consecutive quarters in any 12-month period. A temporary certificate establishes a beginning and ending date.
You can apply for a Certificate of Authority using Online Permit Assistance and Licensing. If you have more than one location and plan to operate all your locations as one business, you can register all the businesses online and you will be sent a Certificate of Authority for each location, all with the same sales tax identification number. If you plan to operate different locations as separate business entities, you must apply for separate Certificates of Authority for each one.
Once you receive your Certificate of Authority you must prominently display it in your business, collect sales tax on your sales and file and pay sales tax returns. You can refer to the Filing Requirements for Sales and Use Tax Returns to see how often you need to file sales tax returns. You can register to file your sales tax returns online by registering for Online Services.
In addition to the New York State sales tax, you also need to collect and pay the local sales tax that applies in the city, county or other locality in the State of New York. Both New York State and the applicable local sales taxes are included on the sales tax return you file. You can find the local sales tax rates by using the Sales tax rates and identifying the correct local taxing jurisdiction page on the New York State Department of Taxation and Finance website.
Sources:
A Guide to Sales Tax in New York State, New York State Department of Taxation and Finance
Do I Need to Register for Sales Tax? New York State Department of Taxation and Finance
Filing Requirements for Sales and Use Tax Returns, New York State Department of Taxation and Finance
Online Permit Assistance and Licensing, New York State
Quick Reference Guide for Taxable and Exempt Property and Services, New York State Department of Taxation and Finance
Register as a sales tax vendor, New York State Department of Taxation and Finance
Sales and use tax, New York State Department of Taxation and Finance
Sales and Use Tax, NYC Finance
Sales tax rates and identifying the correct local taxing jurisdiction, New York State Department of Taxation and Finance