Tell Us Where You Collect Tax
Add New York to the places where you collect tax. This tells AvaTax to calculate tax on New York transactions. See the New York Department of Taxation and Finances website for details about nexus, registration, and taxes in New York.
Before you add New York, there are two things you need to do:
- Make sure you have nexus in New York. In some states, you may have economic nexus if you're a remote seller.
- Register with the New York Department of Taxation and Finances
You don't have to select a tax type for New York as Sales Tax is the default for this state.
"Sourcing" determines the location where a sale is taxed. New York is a destination-sourced state.
Add Your Company Locations
New York doesn't require location reporting on the returns. Add any physical locations you have in New York to enhance your company setup and track sales by location.
Schedule Your Returns
Your company name and taxpayer ID from Your Company Details show up on your returns. Make sure they match what’s on your registration information.
Use this info to schedule your returns. Keep in mind that the selections you made when you told us where you collect tax, any location codes you entered, and the forms you select are related and should tie together.
New York requires you to file sales tax returns annually or quarterly. You may also be required to file part-quarterly (monthly) or make PrompTax payments.
- Select form NY ST-101 if you're required to file annually
- Select form NY ST-100 if you're required to file quarterly and aren't required to file part-quarterly (monthly)
- Select form NY ST-810 for the quarterly return and either:
- Select form NY ST-809 if you’re required to file part-quarterly (monthly) and do NOT have a PrompTax requirement
- Select form NY PrompTax if you’re required to remit monthly PrompTax prepayments
- Enter your nine-digit state account number as the Registration ID when you schedule the returns. This is usually the same as your Federal Employer Identification Number and should be formatted without punctuation. Example: 123456789
- Most taxpayers are required to file and pay electronically
- New York has unique dates for its filing periods. See the New York Filing Requirements for Sales and Use Tax Returns for the filing period dates.
PrompTax Program Requirement: If you have annual liabilities greater than $500,000, you may be required to participate in the PrompTax program.
- The state sends you a notice if you're required to participate in the PrompTax program. Follow the instructions in the notice to register your company for the program. If you don't register as instructed, Avalara can't file the return electronically on your behalf. Your company is responsible for any penalties and interest incurred from non-compliance related to your registration status.
- You must notify Avalara that you are required to pay PrompTax. Indicate you are part of the PrompTax program by answering “YES” to the “Are you required to participate in the PrompTax program” question on the NY ST-810, and by setting up a NY PrompTax form.
- The filing dates for PrompTax taxpayers vary depending on the month. However, Avalara schedules all payments (for both standard and PrompTax taxpayers) for the 20th of each month to avoid late filing or late payment penalties.
- Avalara determines the payment amount for all PrompTax taxpayers using the NY Estimated Method (75% of one-third of the previous year’s comparable quarter liability)
- For more info about PrompTax, see pages 3 and 4 of the New York Filing Requirements for Sales and Use Tax Returns, the PrompTax Program Overview, or contact the New York Department of Taxation and Finances at 518-485-2889
Schedule H: Report of Clothing and Footwear Sales Eligible for Exemption
- Use Schedule H to report clothing and footwear sales that are eligible for exemption. This applies if you're an ST-810, ST-100, or ST-101 filer who sold clothing and footwear costing less than $110 per item or pair. Sales of eligible clothing and footwear are exempt from the 4% NY state sales tax. Local taxing jurisdictions may also exempt these sales from their local rate.
- If you're eligible to file Schedule H,
- Notify Avalara by submitting a case.
- Select Yes for "Do you have clothing sales (Schedule H)?," when you schedule or update the NY return in AvaTax.
Vapor Tax: 20% supplemental sales tax on retail sales of vapor products
- This applies to all NY filers who have retail sales of vapor products. Sales of vapor products calculate at the standard sales tax rate and are subject to a supplemental 20% vapor tax. For full details, visit https://www.tax.ny.gov/bus/vpt/default.htm
- To notify Avalara to report Vapor Tax, when you schedule a return or update a scheduled return, select Yes for "Do you have retail sales of vapor products?." The default setting for Vapor Tax reporting is No, meaning that unless specifically asked, Avalara will not report this supplemental 20% vapor tax separate from the main schedule, even if vapor tax data is present.
- In AvaTax, product codes that will calculate this supplemental 20% sales tax are PS160800 (Electronic cigarettes), PS160801 (Electronic cigarettes and nicotine refill cartridge) and PS160802 (Nicotine refill cartridges for electronic cigarettes). Make sure these codes are used for applicable sales of vapor products.
Paper carryout bag reduction fee: $0.05 supplemental fee on paper carryout bags, other than exempt bags, that sales tax vendors provide to customers
- This applies to all NY filers who provide paper carryout bags to customers in the following locations: Suffolk County, Tompkins County, New York City (which comprises five counties), White Plains (a city in Westchester county), and Troy (a city in Rensselaer county). For an updated list of localities that have enacted the fee, see Publication 718-B.
- The New York State Bag Waste Reduction Act also bans businesses from providing plastic carryout bags to customers, unless such bags are exempt bags. For full details, visit the Paper carryout bag reduction fee information page.
- To notify Avalara to report Paper Carryout bag fee, when you schedule a return or update a scheduled return, select Yes for "Do you have operations subject to the paper bag tax in NY?” The default setting for Paper Bag Fee reporting is No. If you don't select Yes for the setting, Avalara will not report this supplemental $0.05 paper bag fee separate from the main schedule, even if paper carryout bag fee data is present.
- In AvaTax, product codes that will calculate this supplemental $0.05 fee are PB500100 (Checkout Bags), PB500101 (Checkout Bags) and PB500102 (Checkout Bags). Make sure these codes are used for applicable sales of paper carryout bags.