New York Sales Tax Nexus for Remote and Marketplace Sellers

A seller without physical presence generally meets the economic nexus test when sales of tangible personal property delivered into the state produce more than $500,000 in gross receipts and more than 100 sales transactions during the immediately preceding four sales tax quarters. Exceeding only one threshold does not satisfy this test. Other connections may still require registration.

Sales tax quarters run March 1–May 31, June 1–August 31, September 1–November 30, and December 1–February 28 or 29. Reassess after each quarter ends. Black Friday sales fall within the quarter ending November 30, so a holiday review must include earlier quarters rather than just promotional sales.

An office, employees, sales representatives, certain affiliate or referral arrangements, or regular deliveries using the seller’s own vehicles may establish a separate basis for vendor status. Document actual duties, contracts, and start dates. A seller below the economic thresholds must still check these connections.

A state and local tax review should identify which tax and activity create each filing obligation.

The threshold includes taxable and exempt sales of tangible personal property, including sales for resale. Include marketplace sales when calculating the seller's totals, even when a provider collects tax.

Count sales using invoices, sales slips, contracts, or other memoranda of sale. Do not count duplicate copies of one sale or substitute product quantities and shipment counts. Gross receipts are measured without deducting expenses, so platform fees should not reduce the total merely because the seller receives a smaller payout.

Preserve these documents alongside the quarterly summary.

Inventory stored in another state does not, by itself, establish physical presence in New York. Deliveries from that inventory to customers within this jurisdiction may still count toward economic nexus.

For inventory held in New York, examine the fulfillment arrangement. Tax Law § 1101(b)(8)(v) provides a fulfillment exception for sellers who are not otherwise vendors. Covered services under § 1101(b)(18) are limited to specified functions performed by an unaffiliated operator on its premises. These include accepting orders, answering customer inquiries, billing and collection, and shipping orders from inventory.

Compare the contract with actual operations, ownership relationships, and any additional activities. The exception does not eliminate a separate economic nexus or other vendor-status analysis.

A qualifying marketplace provider collects tax on taxable tangible-property sales it facilitates for delivery into the state. Certain out-of-state sellers making only those sales may not need their own registration when the provider collects and remits tax and the seller has no other registration-triggering activities. A business operating locally may still need to register even if a platform collects its tax.

Adding direct sales changes the review. If registration is required, the seller remains responsible for taxable sales outside the provider's coverage. Retain Form ST-150, Marketplace Provider Certificate of Collection, or a public agreement containing the Tax Department’s approved collection language. Provide accurate product and transaction information to the provider.

A payment processor or website host is not automatically a marketplace provider. Review customer and shipping contracts separately under e-commerce sales law.

For a remote seller newly meeting the economic thresholds, Tax Department guidance requires a registration application within 30 days after meeting them and collection beginning 20 days after registration. General registration guidance calls for applying at least 20 days before beginning business requiring registration. Apply through New York Business Express for a Certificate of Authority.

After registration, file required returns even during periods with no taxable sales. Report covered marketplace sales as gross and nontaxable sales under the return instructions, rather than collecting tax twice. Ongoing state tax compliance work connects registration decisions with reporting and remittance.

If earlier records show a possible missed obligation, preserve the calculations, contracts, returns, and agency correspondence. Registering now does not settle earlier liability. A tax attorney can review prior periods, relief eligibility, and notice deadlines.

Another state's sales tax permit does not authorize New York collection or resolve its registration requirements. Evaluate the New York vendor rules independently, even when inventory serves several states.

Do not simply stop filing. If the latest four-quarter totals no longer meet the economic test and no other connection requires registration, the Tax Department permits a final return and cessation of collection. Complete the applicable closure steps. Remaining registered means continuing to file required returns, including zero returns.