1. You may be required to collect sales tax on the products or services that you sell. For example, if you sell items at a retail store or food establishment, or perform services such as auto repairs, pool cleaning, or lawn care, you must collect sales tax from your customers. For more information:

• see Publication 850, New York State and Local Sales and Use Tax Quick Reference Guide
• see Publication 750, A Guide to Sales Tax in New York State
• call the Sales Tax Information Center

2. Most products and certain services are subject to sales tax. However, you may be able to purchase certain items, such as inventory that you intend to resell, without paying sales tax.
    
   Some of your sales may be exempt from sales tax. Generally, these exemptions from sales tax are established with sales tax exemption certificates. However, some exemptions (for example, those for food, drugs, and medicine) do not require an exemption certificate. For information on who and what is exempt from sales tax and whether or not an exemption certificate is required, see Publication 850, New York State and Local Sales and Use Tax Quick Reference Guide.
    
3. To legally make taxable sales, or to issue or accept most sales tax exemption certificates, you must have a Certificate of Authority from the Tax Department. This certificate proves that your business is registered for sales tax purposes. In general, you must apply for a Certificate of Authority at least 20 days before you intend to do any business that requires you to collect sales tax, or issue or accept exemption certificates. To apply:

• go to Online Permit Assistance and Licensing, or
• mail in a completed Form DTF-17, Application to Register for a Sales Tax Certificate of Authority

If your business makes taxable sales before receiving a Certificate of Authority, you may be subject to a penalty of up to $10,000.

4. Once you have your Certificate of Authority, you must send in your sales tax returns and pay any tax due on time. Generally, we must receive your tax return within 20 days after the end of the tax period. Even if you don’t owe any tax, you still have to send in a return.
    
5. Sales tax rates vary by locality. To determine the proper amount of sales tax to collect, see Sales Tax Jurisdiction and Rate Lookup. If you make taxable sales in more than one location, you must determine the proper sales tax rate to collect for each location.
    
6. In addition to your regular recordkeeping requirements, if you collect sales tax you must keep the following detailed records:

• the amount of sales tax collected, if any, on the sales
• the amount of each sale along with a copy of any written sales slip, invoice, or receipt that you give your customer
• the amount of any subsequent return or credit related to a sale
• the jurisdiction (locality) where you made the sales or deliveries
• all exemption certificates from your customers for any tax-exempt sales you made
• copies of your exemption certificates for any tax-exempt purchases you made
• a daily record of all cash, debit, and credit sales

For more information, see Publication 900, Important Information for Business Owners. For the different sales tax rates, listed by jurisdiction, see Publication 718, New York State Sales and Use Tax Rates by Jurisdiction.