New York Sales Tax Filing Update May 2019
What's changing in New York?
New York has passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective June 1, 2019.
- Etsy began this collection on 6/1/19.
- Amazon began this collection on 6/1/19.
- Walmart began this collection on 6/1/19.
- As of June 4, 2019, we have not yet received confirmation that any additional carts currently supported as Marketplace Facilitators in TaxJar's Reporting plan to begin this automatic collection on 6/1/19.
- You can view the state's bill here.
How does this affect me?
If you sell through a Marketplace that has agreed to begin collection in this state, you'll see sales tax collected in New York for sales on and after June 1, 2019 on your TaxJar Dashboard and on your New York sales on your Transactions page.
- If you have never set up a filing frequency for New York in your account's State Settings, our system will default the state to a monthly frequency and due date on your Dashboard after we see tax collected there. (We default to a monthly frequency and due date if you haven't yet adjusted any frequencies on your end, but the state itself would ultimately determine your exact filing frequency.)
- If you are currently opted in to receive email reminders for your sales tax due dates, you'll also see New York listed as a state where you have an upcoming monthly return due in those emails.
I've never registered for a New York license. Do I need to register for a sales tax license in New York now?
If you meet the definition of a vendor in New York, then yes, you will need to register for a New York sales tax license.
- This New York Department of Taxation and Finance bulletin explains who is required to register.
I have already registered for a license in New York but and all of my sales are Marketplace-only sales. Should I cancel my existing registration?
If you met the definition of a vendor in New York prior to this law's effective date, then no - you should not cancel your existing registration as the requirement to register as a vendor is unaffected by New York's marketplace sales tax collection update.
Do I need to collect taxes on my New York sales on other platforms?
Yes-- if you meet the definition of a vendor in New York, and you make sales to customers in New York on platforms outside of the marketplace that is automatically collecting and remitting, you will also need to collect tax on your end on the New York orders that are processed on the other platforms.
Do I still need to file returns in New York?
If you've previously registered with the state, then yes, the state expects you to remain registered and continue to file returns.
- Even if all your sales are marketplace sales, the state will still expect a $0 return to be filed.
I still need to file returns in New York. How do I do this without paying double tax on the sales that were collected and remitted by my Marketplace?
Gross Sales includes marketplace facilitator sales.
Non-taxable sales includes marketplace facilitator sales.
- Unless the marketplace provider has a publicly-available agreement with its marketplace sellers, then you would need to be issued a Form ST-150 from the marketplace provider. You can read more about the required documentation here; if you have any questions, we recommend contacting the state directly or a sales tax expert.
- If all of your sales are Marketplace sales, once you deduct the marketplace sales, you will need to file a $0 return.
- If you make sales on other platforms in addition to the Marketplace, you'll need to make sure you remit the tax you collected for those sales when you file.
- If you're enrolled in AutoFile for New York, our system will handle the Marketplace sales deduction process automatically.
How does this affect my TaxJar Report for New York?
Your New York Sales Tax Report will be updated in July 2019 (when returns for sales after 6/1/19 are due) to specifically reflect sales that had tax collected and remitted by Marketplaces that are supported as Marketplace Facilitators in TaxJar Reports.
- These changes will be similar to the Report updates for other states where the Marketplace Facilitator collects tax automatically.