Home

Certificate of Authority

Certificate of Authority: Vendor Responsibilities and Types of Certificate of Authority

The Certificate of Authority authorizes you to collect sales tax and accept exemptions certificates (these certificates are forms filled by the purchaser and collected by the seller to record why the sales tax was not collected on a particular sale).

Responsibilities:

  • You must file your sales tax return on time, even if you do not make any taxable sales.
  • You need to apply for the Certificate of Authority at least 20 days before doing business in NYS
  • The Certificate of Authority is not transferable.
  • If you cease doing business you must surrender your
  • Certificate of Authority to the tax department accompanied with your final return.
  • You must visibly display your Certificate of Authority in your place of business (or any facility where you conduct business if you do not have a permanent physical location).

Types of Certificate of Authority

There are 3 types of Certificate of Authority

Regular

You should apply for this type of Certificate of Authority if you are making sales from any facility where you regularly conduct business. Also this type of Certificate of Authority applies to you if you sell shows or entertainment venues and regularly sell other taxable products and services than show or entertainment.

Temporary

If you do not plan to make sales for more than 2 consecutive quarterly sales tax periods in any 12 month period in NY state, then this Certificate of Authority type applies to you.

Show or Entertainment

This Certificate of Authority type applies to you if your only business activity is deals with Show or Entertainment venues. This Certificate of Authority is valid only for the current calendar year.

For more details read Publication 750
(http://www.tax.state.ny.us/pdf/publications/sales/pub750_804.pdf)

 

Next: Report Sales Tax returns

 

Overview of the NY Sales Tax.

Management: