NY – Sales Tax Collection Requirement for Marketplace Providers

New guidance affecting businesses that sell items on behalf of third parties.

New York State Department of Taxation and Finance

Sales Tax Collection Requirement for Marketplace Providers

The Tax Department has issued new guidance affecting the sales tax requirements for certain businesses that sell items on behalf of third parties.

See TSB-M-19(2.1)S, Sales Tax Collection Requirement for Marketplace Providers. This TSB-M supersedes TSB-M-19(2)S, Sales Tax Collection Requirement for Marketplace Providers.

On June 24, 2019, the Tax Law was further amended to change the annual sales threshold dollar amount requiring a marketplace provider with no physical presence in the state to register for sales tax from $300,000 to $500,000. This change is effective retroactive to June 1, 2019.

Visit https://www.tax.ny.gov/ for more information.

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