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Do I Have New York Sales Tax Nexus?

If your business is based in New York, you probably already know you have New York sales tax nexus. You need to register with the state and collect and remit sales tax on the taxable items you sell. What you may not know is that even if you don’t have a place of business in the Empire State, you may still have New York sales tax nexus.

Here are the different ways you might gain nexus in New York:

Employee nexus: If you have an employee or work with an independent contractor or sales rep in New York, you could have sales tax nexus. When a contractor or rep based in NY helps your business market taxable items, you need to register and collect New York sales tax.

Delivery nexus: If you are based in Pennsylvania or New Jersey or another state bordering New York, you can get New York sales tax nexus just by driving deliveries into the state. If you use your own vehicle to deliver to your customers, you can drive deliveries over the state line into New York 11 times in a year tax-free. On your twelfth delivery, bingo! -- you have nexus and you need to collect sales tax from your New York customers.

Click-through nexus: New York was the first state to institute click-through nexus. This means that if an affiliate website that funnels sales to your website is based in New York, you have New York sales tax nexus. You need sales of at least $10,000 through your New York affiliates before click-through nexus kicks in.

If you are an ecommerce seller, and especially if you use Amazon FBA, it’s a good idea to know where your goods are warehoused. New York takes sales tax nexus seriously. Stay in compliance to stay out of trouble and avoid future penalties and interest.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Laura McCamy
Avalara Author Laura McCamy