It is always a part of the initiative of the Government of New York to assure that each and every citizen abides to the tax laws of the country . While earlier , entities serving other countries or providing digital services online are required to self deposit their taxes based on their liability or criteria to file tax returns .
These implications are not only applicable on the direct taxes of the taxpayer but also indirect taxes also . In New York , every citizen is required to file even Sales tax if they are providing e-commerce or e-selling or digital services related to any product or services online .
Those working as a seller in New York are required to get registered as a legal entity for filing Sales tax online . The objective of this rule is to assure that each entity working in New York providing digital services receive a certificate of authority to get trusted by buyers online . The certificate will also allow entities to collect taxes from the buyers as well . The entire process on how you can register your business for sales tax in New York and its filing process has been explained in this article .
How to Register as a Legal Entity in New York for Sales Tax Filing ?
In New York , remote and foreign sellers have to register their entity as per Sales Tax Rules , New York prior to 20 days before they initiate their online business . Once the business is registered , the entity will receive a certificate of authority after which the entity can make regular sales . To apply for registration , the process can be followed in the following manner :
- Fill in the information of your business , products and ownership on the tax filing portal of New York . The detailed documentation list and form filling procedures has been mentioned on the official portal .
- Go to the Tax Registration New York Portal and Click on ” I need a NY GOV ID online .
- Enter basic details about yourself as applicant of the registration and fill in the contact details .
- Activate your account with the email verification link received on your account within 48 hrs .
- Fill in 3 security questions to ensure security of your account and make a strong password.
- Once you account becomes active , login to the portal with your login credentials by clicking on MY NYGOV.
- Setup your business profile in the login and enter your Federal Employer Identification Number ( EIN) to submit the entity details . Other than an EIN , you can also provide any business tax ID .
- Provide your office address or registered address of your business .
- Select the entity type from North American Industry Classification System number provided in the form .
- Submit your application , with few other questions asked for your business type and services .
After successful submission of the sales tax New York registration , after few days you will be issued a Certificate and a Sales tax ID from the NYS DEPARTMENT OF FINANCE AND TAXATION.
How you can file Sales Tax Return in New York ?
Sales tax by entity registered under the Sales tax rules is to be collected and be paid in US Dollars . Their is quarterly requirement of an entity to file their taxes on time and report it to the taxation department to avoid cancellation or imposition of penalties on account .
Generally , a standard deadline is provided to every entity to file their sales tax return in New York quarterly including for 20th June for first quarter , 20th September for second quarter , 20th December for third quarter and March 20 for 4th quarter . Once a certificate and a Sales tax ID is issued to an entity, then it becomes essential for the entity to submit a No Tax due return also in case the entity is not liable to pay any tax for the said quarter.
The entire filing process of Sales tax return in New York goes in the following way :
- Log in to the NY.gov account with your Sales ID and login credentials .
- Check your Sales tax web file and log in to your file .
- Select for the Services on the service menu on the account .
- Select Sales tax and file in your Sales tax web file .
- Fill in all details including the sales , purchase , turnover , expenses and income and click on Submit .
Once , the tax file is submitted you are required to pay the taxes in US Dollars within the stipulated time period . You can pay the payable tax amount through bank using a cheque . You can also make payments digitally and can avail for future payments through your saved bank information also .
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How can you earn money providing sales tax filing services in New York ?
It might not be possible for each and every individual and entity to file their sales tax in New York .Also , hiring a financial expert or a legal attorney to file taxes might cost an entity much than expected . So , other way for these entities to pay their taxes is by hiring an individual as a freelancer for filing taxes .
To become a sales tax expert or to provide sales tax services in New York by first completing your sales tax course available for individuals online or you can practice filing by working with some financial expert within an internship program .
On an average , a sales tax expert other than a registered financial unit can earn lots of money by becoming their professional inhouse sales tax guide and can file returns on their behalf . For reference for entire process of filing sales tax in New york , you can check out all details on this portal .
Sales tax filing in New york isn’t difficult , if you have queries related to filing of taxes in New York then you can share your feedback comments down in the comment section below .