New York Takes a Bold Approach to Economic Nexus

The Department of Taxation and Finance for the state of New York amended its Sales Tax registration requirements as of January 1 for remote sellers within the state in response to the US Supreme Court case South Dakota vs. Wayfair. The new registration requirements take effect immediately, making NY the first state not to establish an enforcement grace period for their new nexus parameters.

Remote sellers with no physical presence in the state are now required to register as vendors in New York if they meet both of the following criteria:

1)    The Seller made more than $300,000 in tangible personal property sales delivered in New York.

2)    The Seller conducted more than 100 sales of tangible personal property delivered in the state in the previous four sales tax quarters.

NY Sales Tax Quarters:

·         March 1—May 31

·         June 1—August 31

·         September 1—November 30

·         December 1—February 28/29

These vendors must collect and remit applicable state and local taxes on a timely basis following the four quarters.

In addition to the new economic nexus, out-of-state businesses will continue to be required to register as vendors for sales tax purposes in New York if they meet at least one of the following criteria:

• Making sales of taxable products to customers within New York State, and regularly (at least 12 times a year) deliver the products in your own vehicles;
• Soliciting sales of taxable products or services through employees, salespersons, independent agents, or service representatives within the state; or
• Soliciting business through catalogs or other advertising material, and having additional connection with the state, and through the catalogs you sell taxable, tangible personal property or services.

Tips for the Taxpayer

Stay abreast of sales tax changes in states where you do business or have sales. Perform a nexus review of your company’s operations with consideration for the new economic nexus standards that have taken effect in most sales tax states in the US. Consult expert assistance to ensure that you are properly applying the review to your specific business and economic footprint.

How Can We Help?

Allyn’s tax team is staffed with seasoned tax professionals experienced in all aspects of Federal, multi-state and local tax compliance and consulting for large US and global corporations. We use that experience to your advantage.

Allyn files state and local sales and use tax returns in every US taxing jurisdiction. We can manage your tax compliance, create a solid tax process, and provide audit defense for your company. We regularly perform nexus reviews as a part of both our sales tax consulting and sales tax compliance services. Our significant expertise in this area means you can focus on your core business while we focus on ensuring you are compliant with these new and problematic laws.

Contact us and we can provide a customized cost-effective solution to meet your company’s needs. For further information on Allyn Tax services, please contact: tax@allynintl.com.

Contributor: Marcos Camarena 

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About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.