New York Sales Tax Filing Update May 2019: Marketplace Facilitator Laws
New York passed a law requiring Marketplaces to collect and remit sales tax on sales facilitated through the marketplace effective June 1, 2019.
• Amazon, eBay, Etsy and Walmart began this collection on June 1, 2019.
In this article, we summarize New York's state guidance on the following questions:
- Do I need to register for a sales tax license in New York?
- Should I cancel my existing registration if all my sales are marketplace-collected?
- Do I need to collect sales tax on New York sales on non-marketplace platforms?
- Do I still need to file returns in New York?
- How do I file without paying double tax on the sales that were collected and remitted by my Marketplace?
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 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 have nexus in the state (physical or economic) 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.