The New York State Department of Taxation and Finance recently published guidance on the requirements for out-of-state vendors to register and charge sales tax. This guidance follows the Supreme Court ruling in South Dakota v. Wayfair, which removed the physical presence requirement for states imposing sales tax collection on businesses that have no physical presence in the state.

According to the guidance, 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. These businesses are required to register as a vendor immediately if they have not already done so.

The New York 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. Additional information can be found on the New York State website. Please contact us if you have any questions about how this affects your business.