New York: Sales Tax Registration Guide

Mar 3, 2023 | Blog Posts

Do You Have Nexus in New York?

When a business is required to collect and remit sales tax, it is said to have a sales tax nexus with a state. There are two types of sales tax nexus to consider in most cases: physical nexus and economic nexus. Physical nexus arises when a business has a tangible presence in a state, such as a physical store or office. On the other hand, economic nexus arises from reaching certain economic activity thresholds in a state, such as a specific amount of sales or number of transactions.

Physical sales tax nexus in New York refers to a situation where a business has a sufficient physical presence in the state that triggers a legal obligation to collect and remit sales tax on transactions that occur within the state. This physical presence can take many forms, such as a brick-and-mortar store, warehouse, or distribution center, or even temporary locations such as trade shows or pop-up shops. Once a business meets the threshold for physical nexus in New York, it must register for a sales tax permit. The specific rules and thresholds for physical nexus can vary by state, and it is important for businesses to stay informed and compliant with the laws in each jurisdiction where they operate.

New York’s economic nexus laws require businesses to collect and remit sales tax once they have exceeded certain economic activity thresholds within the state. A business must register for a permit if they have made over $500,000 in sales of tangible personal property or services AND more than 100 orders delivered in New York in the previous four sales tax quarters. Take not that this is AND logic and not OR logic, which is more common among all of the state. The economic nexus thresholds apply to both in-state and out-of-state businesses, making it crucial for businesses to stay informed and compliant with New York’s sales tax laws. If you would like to speak to someone about your specific sales tax nexus footprint, schedule a call with a HOST representative today.

How Do You Register for a Sales Tax Permit in New York?

In order to obtain a sales tax permit in NY, follow the steps below.

1. Navigate to the NY Business Express website.

2. Click “Login Here” followed by “Create an Account” on the following login screen.

3. Follow the state guided prompts to complete your registration.

After creating an account, you will need to complete the online application for a sales tax permit and provide any necessary information, such as your business name and address, tax ID number, and estimated sales volume. Once the application is processed and approved, you will receive your sales tax permit and can begin collecting and remitting sales tax back to the state by filing your sales tax returns.

What Information Do You Need to Register?

In order to register for a sales tax permit in NY, some of the information that you will need is below:

Business name and address
Business entity type (e.g. sole proprietorship, partnership, LLC, corporation)
Federal employer identification number (FEIN) or social security number (SSN)
Business activity information, including a brief description of your products or services
Estimated monthly/annual sales volume
Banking information for electronic funds transfer (EFT) of sales tax payments (optional)
Sales tax jurisdiction information for each location where you will be collecting and remitting sales tax
Contact information for the business owner or authorized representative

Registering your business for a sales tax permit requires providing key details such as your business name, address, tax classification, and information about the goods or services you sell. Upon approval of your registration, NY will issue a unique sales tax permit number to your business. Fortunately in NY, the sales tax number is always your FEIN.

How Long Does it Take for the State to Process Your Sales Tax Permit?

The processing time for a sales tax permit in NY can vary depending on a range of factors. The completeness and accuracy of your application can significantly impact the processing time, as any missing or incorrect information can cause delays. Additionally, the volume of applications being processed at a given time can also affect the turnaround time for your application. If the volume of applications is high, it may take longer to process your application. Furthermore, the complexity of your business activities can also play a role in processing time. If your business operates in multiple jurisdictions or has complex operations, it may take longer to review and approve your application.

While the state estimates a processing time of up to 10 business days for new sales tax permit applications, it is important to note that it can take longer in some cases. It is always a good idea to follow up with the state if you have any questions or concerns.

Need Assistance Registering for a Sales Tax Permit?

Obtaining a sales tax permit in New York requires an understanding of the state’s sales tax regulations. NY offers an online registration process, but it can be challenging to navigate without sales tax expertise. If you face difficulties or have questions, you can contact NY for assistance via email or by calling 518-485-2889. HOST provides a hassle-free sales tax registration service that includes online account setup and complete registration assistance. Completing a simple form is all it takes, and we’ll do the heavy lifting for you.