Registration Requirement for Businesses with No Physical Presence
in New York State:
N.Y.S. Dept. of Tax. & Fin. (1/19). Following its recently issued notice that was released in light of the US Supreme Court's 2018 decision overruling Quill's physical presence nexus standard, the New York Department of Taxation and Finance (Department) has posted additional information which continues to state that due to Wayfair, "certain existing provisions in the New York State Tax Law that define a sales tax vendor immediately became effective." The Department explains that the term "vendor" includes a person who regularly or systematically solicits business in New York State by any means and by reason thereof makes taxable sales of tangible personal property to persons in New York State. A person is presumed to be regularly or systematically soliciting business in New York State if, for the immediately preceding four sales tax quarters:
· The cumulative total of the person's gross receipts from sales of tangible personal property delivered into New York State exceeded $300,000, and
· Such person made more than 100 sales of tangible personal property delivered New York State.
Accordingly, a business that has no physical presence in New York State but meets these requirements must register as a New York State vendor – "such business is required to register as a vendor immediately if it has not already done so." The Department promises that answers to frequently asked questions on this subject are "coming soon." Please contact them with any questions.
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