Any business that sells goods or taxable services within the state of New York to customers located in New York is required to collect sales tax from that buyer. This will include all online businesses. Any seller which conducts business and has a major presence within the state must collect sales tax in New York must pay taxes to the state. Therefore, these sellers required to file for a Sales tax certificate. By not doing so the business may face sanctions or other types of penalties. Additionally, depending on the businesses location and tax jurisdiction, localities such as counties, cities, and other districts can also add additional sales and use taxes.
Do you need to get a Sales Tax certificate in New York State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You have a physical office or place you conduct
- You sell or ship products to a buyer in New York
- You have a distribution location such as a storage area or warehouse space
- You have employees physically present in New York
- You have changed your business structure or moved to a new location
- You have personal short term real property rentals (such as Air BnB)
- Your business leases or rents personal property
- Your business has real rental property (Structures, buildings, and motor vehicles)
- Your business manufactures products for retail sale
- Your business imports goods from out side of New York for retail sale
- Your business purchases wholesale items for resale in the state of New York
- Your business provides taxable services within the state of New York
What constitutes taxable services in New York State?
The majority of service businesses are not taxable in New York . The exceptions would be service businesses that manufacture, alter, install or service parts. A good example of this would be a HVAC company that services and sells air conditioning units and their parts.
Additionally, crime prevention and investigative services, nonresidential cleaning services, and pest control services are taxable
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of New York ?
As a wholesale company conducting business in the state of New York, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
If you an online seller, do you need to collect sales tax on shipping and handling of merchandise?
Shipping and handling charges are generally not taxable if you separate it from the purchase price of the item being sold on the invoice.
Is there sales tax on drop shipments in the state of New York?
A drop shipment is where a seller ( most times out of state ) sells a product which is then delivered to a consumer by a third party shipper. Drop shipments in New York may or may not be required to have sales tax added
Do you have to collect Sales Taxes from out of state buyers?
While you may not collect sales taxes from your out of state customers, you are still required to collect their information and report it to New York State.
New York for a Florida sales/use tax number
New York state, county, city, & municipal tax rate table