New York has a marketplace-provider sales tax rule. A marketplace provider is generally the business that supplies the forum through which a marketplace seller makes a sale of tangible personal property and that collects the customer’s payment, directly or through a third party. When the provider is required to register or otherwise has the required New York connection, it must collect and remit New York sales tax on taxable tangible personal property sales that it facilitates for marketplace sellers.
New York is unusual because its remote economic-nexus test is conjunctive: both the sales threshold and the transaction threshold must be exceeded during the applicable lookback period. The New York State Department of Taxation and Finance administers these rules through its Online Services and NY Business Express registration channels. New York is not a home-rule state for sales tax administration; local jurisdictions do not independently administer their own marketplace-provider registration system.
New York marketplace facilitator rules at a glance
New York uses the statutory term marketplace provider, although businesses commonly use “marketplace facilitator.” The rule applies to a person that, under an agreement with a marketplace seller, facilitates sales of tangible personal property. Facilitation requires both a sales forum—such as an internet website, catalog, shop, store, booth, or similar forum—and collection of the customer’s receipts by the provider, an affiliate, or a contracted third party.
A marketplace provider required to register must collect and remit tax on taxable sales of tangible personal property that it facilitates for marketplace sellers. The collection obligation applies even when the individual marketplace seller would not otherwise be required to register. The rule is administered by the New York State Department of Taxation and Finance, and registration is handled through New York’s Business Express and Online Services channels.
New York’s distinctive point is the conjunctive economic-nexus test. For a provider with no physical presence in New York, the relevant lookback test requires more than $500,000 of gross receipts from sales made or facilitated of tangible personal property delivered into New York and more than 100 such sales. Both conditions must be met; satisfying only one does not satisfy this particular threshold.
Who qualifies as a marketplace provider in New York?
A marketplace provider is a person that has an agreement with a marketplace seller to facilitate sales of tangible personal property. A business facilitates a sale when it provides the place or means where the sale occurs or the offer is accepted and it, an affiliate, or a contracted third party collects the buyer’s receipts paid to the marketplace seller.
This definition can cover an online marketplace, a catalog operation, or a physical marketplace arrangement. The key questions are not simply whether the business advertises another seller’s products or receives a commission. The analysis turns on whether the business provides the sales forum and is involved in collecting the customer’s payment in the manner described by New York law.
The statutory definition concerns sales of tangible personal property. A business that only refers customers, provides advertising, or supplies payment services without satisfying the statutory facilitation elements may require a different analysis. Exact classification depends on the contracts, payment flow, and operating model; confirm unusual arrangements with the Department or have a sales tax professional review them.
When marketplace providers must register in New York
A marketplace provider with a physical presence in New York must register as a New York sales tax vendor when it is engaged in the applicable taxable sales activity. A provider with no physical presence in New York must register when, during the immediately preceding four sales tax quarters, its gross receipts from sales it made or facilitated of tangible personal property delivered into New York exceeded $500,000 and it made or facilitated more than 100 sales of tangible personal property delivered into the state.
The two-part test is conjunctive. New York does not use the more common approach in which either a dollar threshold or a transaction threshold independently creates economic nexus. Gross receipts include sales of tangible personal property delivered into New York, and the transaction count includes qualifying sales transactions whether taxable or exempt for purposes of the threshold calculation.
Registration applications and account administration should be completed through the current NY Business Express or New York State Tax Department Online Services process. Registration duties can also arise from physical presence, solicitation, agents, representatives, or other nexus facts, so a provider should not rely on the remote-sales test alone. Check the Department’s current registration instructions before submitting an application.
When facilitators must collect New York sales tax
A registered marketplace provider must collect New York sales tax on taxable sales of tangible personal property that it facilitates for marketplace sellers. The Department states that this applies regardless of whether the individual marketplace seller is required to register. The provider therefore needs a process for identifying the delivery jurisdiction, determining the applicable tax treatment, charging the correct tax, and remitting it to New York.
The collection rule is not limited to sales by sellers located in New York. A remote provider that meets New York’s registration and nexus requirements can have collection duties for taxable property delivered to New York customers. A provider’s own direct sales may also be taxable and must be handled alongside facilitated sales.
The taxability of an item, exemption documentation, delivery location, and treatment of shipping or other charges can affect the amount collected. Do not assume that every order processed through a marketplace is taxable or that every product is treated identically. When the product or transaction is unusual, confirm the position with the New York State Department of Taxation and Finance.
Which marketplace sales are subject to collection rules?
New York’s marketplace-provider collection rule is directed at taxable sales of tangible personal property. The statutory framework also includes prewritten computer software that is downloaded or accessed remotely within the relevant tangible-personal-property treatment described by the Department. The provider must evaluate the product and delivery facts under New York rules rather than applying a generic marketplace tax setting.
The marketplace-provider rule does not, merely because a transaction occurs through a marketplace, automatically extend to every category of service or admission. The Department’s marketplace-provider materials distinguish tangible personal property from services such as transportation or electric service. Hotel occupancy, restaurant food, admissions, and other specially taxed or locally administered categories require separate analysis under the provisions that apply to those transactions.
For a mixed marketplace, maintain a product and transaction classification process. If the business facilitates property sales together with services, lodging, prepared food, admissions, or other categories, the exact collection responsibility may differ by activity and local jurisdiction. Confirm the treatment before representing that the marketplace-provider rule covers the entire catalog.
When marketplace sellers still need a New York permit
A marketplace seller may still need a New York sales tax Certificate of Authority. The seller should register if it has its own New York nexus, makes taxable sales outside the marketplace, sells through another marketplace that does not provide the required collection relief, or has other facts that independently create a registration obligation.
A seller registered for New York sales tax can be relieved from collecting and reporting tax on facilitated sales when it receives, in good faith, a properly completed Form ST-150 from the provider stating that the provider is registered and will collect tax on all taxable tangible personal property sales it facilitates for that seller. The seller must also avoid supplying incorrect or insufficient information that causes a collection failure.
If the seller has no other New York sales and all relevant New York sales are facilitated by a provider that gives the required certificate or approved agreement, the seller may not need to register for those sales. This relief does not apply where the seller and provider are affiliated under the statutory affiliation rules. Sellers should preserve the certificate and review the position whenever their channels, products, inventory, or fulfillment arrangements change.
New York Form ST-150: Marketplace Provider Certificate of Collection
Form ST-150 is the New York Marketplace Provider Certificate of Collection. A provider uses it to certify to a marketplace seller that the provider is registered to collect New York sales tax and will collect tax on taxable sales of tangible personal property that it facilitates for that seller.
The provider must provide a properly completed ST-150 to marketplace sellers within 90 days after facilitating their sales, unless it has a publicly available agreement with the required statement or substantially similar language. A seller should obtain the certificate or confirm the approved agreement before treating facilitated receipts as relieved from its own collection obligation.
The certificate is not a blanket exemption certificate for the buyer and does not make otherwise taxable sales exempt. It documents which party is responsible for collecting and remitting tax. Keep the certificate, related agreements, and evidence of the facilitated transactions in the seller’s sales tax records.
Filing requirements for providers and sellers
A marketplace provider that is registered with New York must file the returns required for its account and remit the tax it collected on taxable facilitated sales, together with tax from any direct sales for which it is responsible. The return frequency is assigned by the Department and can change with the account’s filing profile. Use the filing frequency and due dates shown in the provider’s current New York account instructions rather than relying on a generic calendar.
A marketplace seller remains responsible for filing and remitting tax on sales it makes outside the provider’s collection arrangement or on transactions for which the provider has not assumed the required responsibility. A seller that has only relieved facilitated sales may have a different filing position, but it should not omit a required return without confirming the Department’s instructions for its account.
Amounts collected from customers are trust-tax obligations, not ordinary revenue. Reconcile marketplace statements, refunds, chargebacks, exempt sales, tax collected, and remittances before each filing. When a marketplace’s reports do not identify New York destination or tax details clearly, obtain transaction-level data or have the records reviewed before filing.
Records marketplace businesses need to keep
Providers and sellers should retain records that allow New York to verify the sales, taxability, destination, and party responsible for collection. Useful records include sales invoices and order data, customer delivery addresses, product classifications, amounts charged, tax collected, exemption documentation, refunds, credits, payment records, marketplace settlement reports, and filed returns.
This one varies by seller and by state, and it is the kind of detail we check for clients as part of the service — get in touch and we will confirm where you stand. Sellers should retain certificates received from providers and documentation supporting any decision not to include facilitated receipts in taxable receipts.
New York record-retention rules can depend on the type of record and the applicable tax period. Do not discard records based on an assumed period. Confirm the current retention requirement with the Department, and preserve records longer when an audit, dispute, amended return, refund claim, or unresolved liability makes them relevant.
What to do with sales tax already collected
Tax collected from New York customers should be segregated and reconciled to the provider’s or seller’s return. A provider that collected tax on facilitated sales generally must report and remit it through its New York sales tax account. The seller should compare its order records with the provider’s certificate and settlement reports so the same tax is not collected or remitted twice.
If tax was collected but the transaction was later refunded, the correction should follow New York’s rules for refunds, credits, and amended reporting. If the wrong rate or jurisdiction was used, investigate the affected orders and correct the return or customer charge as required. Do not simply treat collected tax as additional sales revenue.
Where responsibility is unclear—for example, because a provider’s certificate was missing, a seller supplied incomplete product or destination information, or the parties are affiliated—pause before filing and determine which party must report the receipts. The exact correction depends on the records and the filing period; the Department or a qualified compliance professional can confirm the appropriate treatment.
New York compliance checklist for marketplace businesses
Start by mapping every sales channel and identifying whether the business is the marketplace provider, the marketplace seller, or both. Document who supplies the sales forum, who collects the customer’s payment, who controls the product and delivery data, and who remits tax. Then test New York nexus using both the physical-presence facts and the conjunctive remote-sales threshold.
Not sure how this applies to your business? We handle US sales tax registration, filing and remittance for ecommerce sellers as a fully managed service, for one fee. Book a free consultation and we will review your own position with you.
Next, register through the current NY Business Express or Online Services process if registration is required. Configure product taxability and destination rules, issue or obtain Form ST-150 where applicable, and establish a reconciliation between order data, marketplace settlements, tax collected, returns, and payments.
Finally, review the arrangement whenever a new product category, warehouse, fulfillment provider, sales channel, or payment structure is added. The exact position depends on your circumstances. If the facts do not fit the standard marketplace model, confirm them with the New York State Department of Taxation and Finance or ask Sales Tax Compliance USA to check the registration, collection, certificate, filing, and recordkeeping position for you.
New York marketplace-provider obligations by situation
| Situation | New York treatment | Practical action |
|---|---|---|
| Remote marketplace provider with no New York physical presence | A remote marketplace provider must register when, in the immediately preceding four sales tax quarters, its gross receipts from sales made or facilitated of tangible personal property delivered into New York exceeded $500,000 and it made or facilitated more than 100 such sales. | Track both gross receipts and transaction count; both parts of the test must be met. |
| Marketplace provider with New York physical presence | Physical presence can create a registration and collection obligation for taxable tangible personal property sales facilitated for marketplace sellers, subject to the applicable New York rules. | Review property, employees, inventory, representatives, and other New York connections before relying on remote thresholds. |
| Registered provider facilitating taxable tangible personal property sales | The provider collects and remits New York sales tax on taxable facilitated sales, even if the individual seller is not required to register. | Capture delivery jurisdiction, product taxability, exemptions, refunds, and tax collected. |
| The exact position here depends on your own facts, so it is worth confirming with the state directly or talking to us about your situation. | The seller may be relieved of collecting and reporting tax on qualifying facilitated sales when the statutory conditions are satisfied. | Keep the certificate or agreement evidence and verify that the provider actually covers the relevant sales. |
| Seller makes direct sales or uses another channel | Provider collection does not automatically cover sales outside the provider’s arrangement. | Test the seller’s own nexus and registration obligation and report non-covered sales as required. |
| Services, hotel occupancy, restaurant food, or admissions | These categories are not automatically covered by the tangible-personal-property marketplace-provider rule; separate New York provisions may apply. | Classify each category separately and confirm the current treatment with the Department. |
| Tax already collected | Collected tax must be reconciled and remitted or corrected through the responsible party’s New York account. | Do not treat collected tax as revenue; investigate refunds, errors, duplicate reporting, and missing certificates. |
Frequently asked questions
What is a marketplace facilitator in New York?
New York calls it a marketplace provider. It is a person that, under an agreement with a marketplace seller, provides the forum where a tangible-personal-property sale occurs or is accepted and collects the customer’s receipts directly, through an affiliate, or through a contracted third party.
Does New York have a marketplace facilitator law?
Yes. New York requires qualifying marketplace providers to collect and remit sales tax on taxable tangible personal property sales they facilitate. The rule is administered by the New York State Department of Taxation and Finance.
When did New York’s marketplace facilitator law take effect?
New York has a current marketplace-provider collection rule, but this page does not state a historical enactment or effective date. Check the current date and applicable transition instructions on the New York State Department of Taxation and Finance site before analyzing an earlier filing period.
What sales threshold requires a remote marketplace provider to register in New York?
A remote marketplace provider with no physical presence must exceed $500,000 of gross receipts from sales it made or facilitated of tangible personal property delivered into New York and make or facilitate more than 100 such sales during the immediately preceding four sales tax quarters. Both the dollar threshold and the transaction threshold must be met.
Does a marketplace facilitator have to collect New York sales tax for all third-party sellers?
A registered marketplace provider must collect tax on taxable sales of tangible personal property that it facilitates for marketplace sellers, regardless of whether each seller separately must register. The rule does not automatically cover every service, lodging, food, admission, or other non-property transaction.
Do marketplace sellers still need to register for New York sales tax?
Sometimes. A seller may not need registration for New York sales that are all facilitated by a provider that supplies the required Form ST-150 or approved public agreement language, if the seller has no other New York registration obligation. The seller may still need a Certificate of Authority for direct sales, other channels, independent nexus, or transactions not covered by the provider.
What is New York Form ST-150, Marketplace Provider Certificate of Collection?
Form ST-150 is a certificate from a marketplace provider to a marketplace seller stating that the provider is registered to collect New York sales tax and will collect tax on taxable tangible personal property sales it facilitates for that seller. When the statutory conditions are met, it can relieve the seller from collecting and reporting tax on those facilitated sales.
Are sales of services, hotel occupancy, restaurant food, or admissions covered by New York’s marketplace-provider collection rule?
Not automatically. The marketplace-provider rule is directed at taxable sales of tangible personal property, and New York’s Department distinguishes services from that category. Hotel occupancy, restaurant food, admissions, and similar transactions can be governed by separate rules, so classify them individually and confirm the current treatment with the Department.
How we handle this for you
The mechanics in New York are manageable on their own; the cost is the time it takes every single filing period, in every state you are registered in. We are a managed service: our team registers you with the New York State Department of Taxation and Finance, prepares and files your returns, and keeps you compliant period after period. You get one point of contact and one invoice — you do not get another dashboard to learn.
See our sales tax compliance services, check where you have obligations with the nexus calculator, or talk to us about New York.
Official sources
- https://www.tax.ny.gov/pubs_and_bulls/publications/sales/marketplace.htm
- https://www.tax.ny.gov/pdf/current_forms/st/st150.pdf
- https://www.tax.ny.gov/pubs_and_bulls/publications/sales/nexus.htm
- https://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/do_i_need_to_register_for_sales_tax.htm
- https://www.tax.ny.gov/pubs_and_bulls/advisory_opinions/sales/24-52s.htm
- https://www.tax.ny.gov/pdf/memos/sales/m19-2-1s.pdf
Reviewed by Paul le Roux, CA(SA). Sales Tax Compliance USA handles US sales tax registration, filing and remittance for cross-border and domestic ecommerce sellers as a fully managed service.
This page is general information for educational purposes and does not constitute legal or tax advice. Sales tax rules change and depend on your specific facts. Consult a qualified tax professional about your own position.
Related guides
Other New York guides: Amazon FBA · Audit defence · Back sales tax · Deregistration · Economic nexus · Foreign sellers
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