Remote seller test over the prior four sales tax quarters.
Providers have a similar facilitated-sales test.
New York uses sales tax quarters ending February, May, August, and November.
Quick answer for ecommerce sellers.
New York requires out-of-state sellers to register for sales tax if, in the immediately preceding four sales tax quarters, gross receipts from sales of tangible personal property delivered into New York exceeded $500,000 and the seller made more than 100 sales of tangible personal property delivered into the state. Marketplace providers without physical presence use a similar test based on sales made or facilitated into New York.
For ecommerce merchants, the operational challenge is the rolling four-quarter window. The filing packet should preserve New York gross receipts, sale count, direct versus marketplace sales, taxable versus exempt sales, refunds, and the period used for nexus review.
What creates New York sales tax nexus?
- Economic nexus: more than $500,000 in gross receipts and more than 100 sales into New York over the immediately preceding four sales tax quarters.
- Marketplace provider nexus: marketplace providers can trigger registration based on sales made or facilitated into New York.
- Physical presence: employees, inventory, agents, representatives, property, or regular in-state delivery can create obligations.
- Solicitation activity: employees, contractors, catalogs, advertising, or other representatives can matter.
- Marketplace sellers: marketplace sellers may still need to register and file periodic returns if they meet vendor registration requirements.
How New York registration fits into the workflow.
Once New York is active, save the certificate, account number, filing frequency, portal owner, payment method, marketplace status, and reviewer assignment. The registration file should show the four sales tax quarters reviewed and the source reports used to support both the dollar threshold and sale count.
Because New York's rule uses both receipts and sales count, a state map that tracks only revenue is not enough. Keep order count and gross receipt support together.
Collection and marketplace treatment.
New York collection depends on product taxability, customer destination, sales channel, and whether a marketplace provider collected tax. Direct merchant-collected sales should be separated from marketplace-facilitated sales before filing.
- Track New York gross receipts and sale count by the relevant four-quarter window.
- Separate direct and marketplace sales.
- Preserve taxable, exempt, refunded, and nontaxable support.
- Save exemption certificates and resale support.
- Reconcile tax collected to the return before filing.
How to prepare a New York filing packet.
- Export exact-period data: orders, marketplace reports, refunds, tax collected, exemptions, and accounting support.
- Confirm nexus: document the $500,000 and 100-sale test for the four-quarter window.
- Separate channels: split marketplace-facilitated and direct sales.
- Map return totals: summarize gross, taxable, exempt, refund, and tax-collected amounts.
- Review cadence: confirm filing frequency and payment deadline in the account.
- Archive proof: save return confirmation, payment receipt, source reports, and reviewer notes.
Risk controls for New York.
New York risk often comes from tracking only the dollar threshold, ignoring the sale-count test, or using a calendar-year window instead of New York's sales tax quarter window.
- Were both the $500,000 and 100-sale tests reviewed?
- Were the correct sales tax quarters used?
- Were marketplace provider sales separated?
- Are exemptions and refunds supported?
- Was filing and payment proof archived?
FAQ.
What is New York economic nexus?
New York generally requires registration when gross receipts from sales delivered into the state exceed $500,000 and the seller made more than 100 sales over the immediately preceding four sales tax quarters.
Does New York use a transaction threshold?
Yes. New York uses a combined test: more than $500,000 in gross receipts and more than 100 sales.
Do marketplace providers have New York obligations?
Yes. Marketplace providers without physical presence can be required to register when sales made or facilitated into New York exceed the statutory dollar and sale-count thresholds.
Can AtomicTax help file New York returns?
Yes. AtomicTax prepares New York filing packets and completes standard sales tax filings for $45 per filing.
Sources and references.
Need help making New York filings repeatable?
AtomicTax prepares reviewable sales tax filing packets from ecommerce reports, separates marketplace and direct-channel activity, and completes standard filings for $45 per filing.