US New York implements Wayfair Sales Tax rule

The New York state tax department published on 15 January 2019 guidance on the immediate requirements for out-of-state sellers to register and charge Sales Tax. This follows the US Supreme Court ruling on South Dakota vs Wayfair, which imposed a new, economic nexus test on sellers from outside the state, including international sellers. This changed the old test which has required a physical presence.

New York has set a threshold on such sellers’ liability to start charging Sales Tax as:

“A person is presumed to be regularly or systematically soliciting business in the state if, for the immediately preceding four sales tax quarters:

• the cumulative total of the person's gross receipts from sales of tangible personal property delivered into the state exceeded $300,000, and
• such person made more than 100 sales of tangible personal property delivered in the state.

Therefore, a business that has no physical presence in New York State but meets the requirements outlined above must register as a New York State vendor. Such business is required to register as a vendor immediately if it has not already done so.”

The New York sales tax quarters are March 1 to May 31, June 1 to Aug 31, Sept 1 to Nov 30, and Dec. 1 to Feb 28 or 29.

No effective date is mentioned in the guidance, and it is therefore presumed to be effective immediately.