New York State and Wayfair Decision

New York State recently issued N-19-1, Notice Regarding Sales Tax Registration Requirements for Businesses with No Physical Presence in New York State, in which it reminded businesses that, due to the Supreme Court’s June 2018 decision in the South Dakota v. Wayfair case, certain existing provisions in the New York State Tax Law that define a sales tax vendor immediately became effective.

A business that has no physical presence in New York State but has both made more than $300,000 in sales of tangible personal property delivered in the state and conducted more than 100 sales of tangible personal property delivered in the state in the immediately preceding four sales tax quarters is required to register as a sales tax vendor, and collect and timely remit the applicable state and local sales tax.

Practitioners should address this requirement with affected clients and should make sure that clients are properly registered in and remitting sales tax to other states, to the extent that the clients meet the requirements to collect and remit sales tax in those other states.