New York Announces Sales Tax Obligations for Remote Sellers

January 16, 2019 Andrew Decker

The New York Department of Taxation and Finance has issued Notice N-19-1 announcing its intention to enforce collection of sales tax from remote sellers. The Department has found that the United States Supreme Court ruling in South Dakota v. Wayfair (138 S.Ct. 2080 [2018]) has activated New York Tax Law 1101(b)(8)( i )(E) and 1101(b)(8)(iv). A vendor for sales tax purposes is now defined to include a person who, within the last four sales tax quarters, made over 100 sales of tangible personal property into New York and whose cumulative total of gross receipts from such sales exceeds $300,000. The notice states that sellers who meet this threshold should register to collect sales tax immediately. While additional clarity is needed on when the Department will begin enforcing the new collection obligations, the notice does indicate that it views NYTL 1101(b)(8)( i )(E) as having taken effect immediately upon the issuance of the Wayfair decision in June, so it is advisable that remote sellers should take immediate action to adjust for new tax collection obligations.

For more details on remote sales in New York please see the Department’s website.

See our more detailed blog article as well, here: New York Implements Economic Nexus by Resuscitating 1980’s Law

About the Author

Andrew Decker is a Junior Regulatory Counsel at Sovos Compliance. Working within Sovos’ Regulatory Analysis Department, Andrew’s work centers on indirect taxes (VAT, GST, Sales Tax), with a particular focus on jurisdictions in Europe and Asia. Andrew is a member of the Massachusetts Bar with a J.D from Northeastern University School of Law and a B.A. from Bates College.

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