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Under the presumption, a seller of taxable property or services is presumed to be a vendor if the seller enters into agreements with residents of New York State under which residents receive consideration for referring potential customers to the seller by links on a Web site or otherwise, and the value of the sales in New York State made by the seller through those agreements totals more than $10,000 in the preceding four sales tax quarters.

The Tax Department may not assess sales tax required to be collected or related penalty and interest for periods beginning on or after June 1, 2008, against a business that meets the conditions described under the section in the memorandum entitled Relief for sellers covered by the presumption, if the business registers and begins collecting sales taxes by June 1, 2008.

A business can register online or by using form DTF-17, Application to Register for a Sales Tax Certificate of Authority. Most businesses should enter a principal NAICS code in the Non-store Retailer category, such as 454111, Electronic Shopping, or 454113, Mail-Order Houses, on the application.

Additional information

Technical memoranda

• TSB-M-08(3), New Presumption Applicable to Definition of Sales Tax Vendor
• TSB-M-08(3.1), Additional Information on How Sellers May Rebut the New Presumption Applicable to the Definition of Sales Tax Vendor as Described in TSB-M-08(3)S

FAQs that address specific scenarios:

• Conditions that cause sellers to fall under the presumption of being a sales tax vendor under Chapter 57 of the Laws of 2008
• Whether a resident representative must register as a sales tax vendor
• Whether an affiliate network service provider must register as a sales tax vendor
• Whether an affiliate network service provider has any responsibility for sales tax purposes
• How sellers who are presumed to be vendors under this law register for sales tax purposes
• Whether the sale of data or information delivered to customers in New York State (e.g., lists of e-mail addresses and customer contact information) is subject to sales tax.
• An affiliate network service provider that has an office and employees located in New York State enters into a contract with an Internet based retailer (the seller) located outside of New York State.

Sales Tax Information Center: 1-800-698-2909

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