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Wayfair and remote sellers

On June 21, 2018, the United States Supreme Court ruled that a state may impose sales tax collection responsibilities on businesses that have no physical presence in the state (remote sellers). See South Dakota v. Wayfair, 138 S.Ct. 2080 (2018).

Due to this ruling, existing provisions in tax laws in many states immediately became effective and out-of-state businesses became obligated to collect sales taxes (primarily from online sales) and remit them to the states to which the products are shipped.

In response to the Supreme Court's decision in South Dakota v. Wayfair, New York State now requires out-of-state sellers, including online retailers, to collect and remit sales tax if they meet certain economic thresholds. Specifically, a business with no physical presence in New York is required to register as a sales tax vendor and collect sales tax if, in the preceding four quarters, it has made more than $500,000 in sales of tangible personal property delivered in the state, and conducted more than 100 sales transactions in New York. This applies to all remote sellers that meet these criteria, regardless of where they are located. The aim is to level the playing field between in-state and out-of-state businesses and to ensure that sales tax is collected and remitted in a manner consistent with the Court's decision.

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Taxes

Wayfair and remote sellers

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New-York State Code

Taxes

Wayfair and remote sellers

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