New York sales tax filing during the COVID pandemic is a complicated process, but understanding the deadlines and rules can help you stay compliant. If an unaffiliated business or legacy of a larger entity, here’s how to file correctly.
Who Needs to File Sales Tax?
If you sell taxable products or services in New York State, you must also have a note for a sales tax permit. This would apply to retailers, wholesalers and some services that sell tangible property, digital products or some services.
Sales Tax Filing Frequency
Your filing frequency depends on how much sales tax you collect in a year:
- Annual: Tax liability is <300/year
- Quarterly: $300 to $3,000 in sales tax per quarter
- Monthly: $3,000 sales tax over a quarter
As per the computed liability, you will receive your filing schedule from the New York State Department of Taxation and Finance.
Key Filing Deadlines
Does your sales tax reporting deadline fall due in the last 10 days of a reporting period?
Monthly Filers: Due 20th of following month
Quarterly Fillers: Due by the 20th of the month after the quarter ends:
- Q1 (Jan-Mar): April 20
- Q2 (Apr-Jun): July 20
- Q3 (Jul-Sep): October 20
- Q4 (Oct-Dec): January 20
Annual Filers: 20th day of the month based on the month in which your fiscal year ends.
If backdated to a weekend or holiday, it is held until the next business day.
Filing Process
Papers are filed online via NYSDTF portal Report these items:
- Total sales
- Taxable Sales (Sales Subject to Tax)
- Sales that are also exempt (e.g., sales to governmental entities)
- Sales tax earned during the period
Get a handle on proper record keeping to support your filings. Depending on the amount owed, payments can be made electronically or by check.
Penalties for Late Filing
There are penalties for late filings that can ramp up:
- Failure to File Penalty: 5% of tax owed per month for each month late, up to 25%.
- Interest: on unpaid sales tax from the due date to payment date.
Filing for returns timely and avoiding penalties
Sales Tax Exemptions
Some sales are excluded, including:
- Sales to other registered businesses ( resale transactions)
- Foods and drinks that most people can consume
- Prescripted drugs and medical devices
Record these sales to avoid making errors on your returns.
Sales Tax Audits
Track New York’s business compliance audit. Maintain accurate records of sales, invoices, tax collections, for potential audits.
Conclusion
Staying on top of New York sales tax filing deadlines and requirements is the first step to avoid penalties. Obtain a sales tax permit, filed timely and keep detailed records of your sales. If you’re unsure, and the new rules affect you, consider contacting a tax professional to help make sure you’re compliant.
