Software Sales Tax in New York 🇺🇸

The registration process in the Big Apple is more sophisticated than in some other states, in the fact that it isn’t a solely paper-based system. 

That being said, it’s far from painless. The registration form is long and requires a lot of specific information – to the point where it might be easier to get a tax agent to help you.

Filing frequency: Variable depending on the value of sales

Filing in New York is either annual, quarterly, or monthly, depending on the value of your sales into the state. 

Unfortunately, the filing system in New York can be quite complex. You’ll need to manage tax exemptions by manually checking your customer’s exemption certificates and ensure you’re compliant across cities and counties within New York state.

When calculating how much tax you owe, you'll need to understand how and where the tax rate varies across New York State. The base state sales tax rate is 4% but depending on buyer location within the state, it can be as much as 8.9%.

In New York, penalties for non-compliance are strongly affected by the total amount of sales into the state. 

A late payment can see you served a heavy fine, with interest on the tax owed. This might not seem like such a problem but it means even if you send a payment on the day it’s due, it could be deemed late because you need to allow time for the department of revenue to receive and process the funds.

If a business is caught deliberately evading tax responsibilities, the penalties can be up to 200% of the amount owed.