New York: Sales Tax Handbook
How to file your sales taxes in New York
Once your business has a New York sales tax license and begins to make sales, you are required to start collecting sales taxes on behalf of the New York government and filing regular sales tax returns. This page will help you understand the basics of your tax collection and filing responsibilities.
How To Collect Sales Tax In New York
If the seller has an in-state location in the state of New York, they are legally required to collect sales tax at the rate of the destination of the buyers, as New York is a destination based sales tax state.
If the seller's location is out of state, then the collection of sales tax is still done in the same way. The seller would still be required to charge the buyer's local tax rate.
Sales Tax Collection Discounts In New York
New York allows merchants to keep a small percentage of the sales tax they collect as a collection discount, which serves as compensation for the work required to comply with the New York sales tax regulations
The collection discount is 5% of tax due, and it can be can be claimed as a credit, two hundred dollars or less for each period.
Your New York Sales Tax Filing Requirements
To file sales tax in New York, you must begin by reporting gross sales for the reporting period, and calculate the total amount of sales tax due from this period.
The state of New York requires all taxpayers to file taxes inline. The New York Department of Taxation and Finance is utilized in filing online, and also can be used to remit payment.
Tax payers should be aware of a late filing penalty. The minimum penalty is fifty dollars, in addition to an interest, which increases as time goes by.
The state of New York requires that every seller who owns a sales tax permit to file a sales tax return on the required day, even if it is a "zeroes-out" tax return, and there is nothing to report.
Your New York Sales Tax Filing Frequency & Due Dates
Your business's sales tax return must be filed by the 20th of the month following reporting period for monthly filers, for quarterly filers on last day of the month following reporting period. For a list of this year's actual due dates, see our calendar of New York sales tax filing due dates.
Where To File Your New York Sales Tax Return:
Filing Your New York Sales Tax Returns Online
New York supports electronic filing of sales tax returns, which is often much faster than filing via mail.Electronic tax filing is required for monthly and quarterly sales tax filers who meet these three conditions: (1) do not use a tax preparer to prepare the required filings; (2) use a computer to prepare, document or calculate the required filings or related schedules, or is subject to the corporation tax e-file mandate; and (3) have broadband Internet access. Tax preparers are also required to electronically file returns for annual sales tax filers.
New York allows businesses to make sales tax payments electronically via the internet.Electronic payments are required if, on or after June first, the taxpayer's liability for the period of time from June first through May thirty first directly after was greater than five hundred thousand dollars for the state and local sales and use taxes, or if it is greater than five million dollars for prepaid state and local sales and use taxes on motor fuel and diesel motor fuel.
You can process your required sales tax filings and payments online using the official New York State Tax Department Online Services website, which can be found here . You should have received credentials to access your New York State Tax Department Online Services account when you applied for your New York sales tax license.
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