How to Get a Seller’s Permit in NY: Who Needs One and How to File

To get a seller’s permit in New York, file Form DTF-17 online through the New York Business Express portal at least 20 days before your first taxable sale. The permit is officially called a Certificate of Authority, it costs nothing to apply for, and once issued it lets you collect sales tax from customers and buy inventory tax-free for resale.¹

Do You Need One

If you sell taxable goods or services in New York, yes. There is no small-seller exception. Home-based sellers, once-a-year sellers, and temporary vendors at craft fairs or flea markets all have to register.² The definition of “vendor” in Tax Law Section 1101 is broad enough to cover retailers, wholesalers, and service providers whose services are taxable.³

Out-of-State Sellers

If your business has no physical presence in New York, you only need to register once you exceed both of these thresholds during the previous four sales tax quarters: more than $500,000 in gross receipts from New York sales, and more than 100 individual sales delivered into the state. Both conditions have to be met in the same lookback period. Hit one but not the other, and registration is not required.⁴

Marketplace Sellers

Selling only through Amazon, Etsy, or eBay? The marketplace itself is generally responsible for collecting and remitting sales tax on the sales it facilitates, provided the platform meets the same $500,000 and 100-transaction thresholds.⁵ You still need your own Certificate of Authority if you make any direct sales outside those platforms, and you need one to use resale certificates when buying inventory.

Buying an Existing Business

You cannot use the previous owner’s certificate. You have to apply for your own before making any sales. The same rule applies if you change your business structure, for example converting a sole proprietorship into an LLC or corporation.⁶

What to Gather Before You Apply

Have the following ready before you open the application:

Your Federal Employer Identification Number, or Social Security Number if you’re a sole proprietor.
Your legal business name, matching your state filings exactly.
A physical business street address. A P.O. box alone will not work.
Names and contact information for every owner, officer, director, or partner who will be responsible for the business’s tax obligations.
Your NAICS code for principal business activity, which you can look up in the Department of Taxation and Finance’s Publication 910.⁷
The date you plan to begin making taxable sales. This sets your initial filing period.

If your business operates from more than one location in New York, you can either file a separate Form DTF-17 for each site or register all locations under a single application. Either way, each location needs its own sub-certificate.⁷

How to File

The fastest route is online through New York Business Express. First create a NY.gov Business account; a personal NY.gov account will not work for this. Once you’re logged in, complete the digital Form DTF-17 and submit it with an electronic signature.²

The portal generates an immediate confirmation and tracking number, which acts as temporary proof of filing while the department reviews the application. Once approved, your certificate becomes available through your online dashboard or arrives by mail.

You can also mail a paper Form DTF-17, but processing takes considerably longer than online submission.

Watch the deadline. File at least 20 days before your first taxable sale. Operating without a valid certificate is a separate violation with its own penalty, so build that lead time into your launch schedule.¹

What Happens After You’re Approved

Your Certificate of Authority has to be displayed at your place of business where customers can see it.¹ From the day it takes effect, you’re responsible for charging the correct combined sales tax rate on every taxable transaction. New York’s state rate is 4%, and local rates add another 3% to 4.75%, so the combined rate lands between 7% and 8.75% depending on where the sale takes place.⁸ The rate follows the delivery location for goods and the location of performance for services, not your business address.

Filing Frequency

The Department of Taxation and Finance assigns you a filing frequency (monthly, quarterly, or annually) based on your expected taxable receipts. You have to file a return for every period, even one with zero sales and no tax due. Skipping a return because you didn’t sell anything triggers penalties automatically and is one of the most common mistakes new registrants make.

Monthly filers who prepare returns on a computer with broadband Internet access are required to file electronically through the department’s Web File system.⁹

Buying Inventory Tax-Free

One immediate benefit of holding the certificate is the ability to buy goods for resale without paying sales tax at the register. You give your supplier a completed Form ST-120, the New York Resale Certificate, which requires your sales tax identification number and a description of what you’re buying.¹⁰ You can issue a single-use certificate for one purchase or a blanket certificate covering all future purchases of the same general type from that supplier.

The exemption applies only to items you actually resell. If you pull something out of inventory for your own use, you owe use tax on that item and report it on your next sales tax return.¹¹

Recordkeeping

Keep detailed records of every sale and purchase for at least three years from the due date of the related return. That means sales slips, invoices, receipts, cash register tapes, and purchase documentation showing whether items were bought for resale or taxable use. The department can extend the retention period if your records are drawn into an audit or legal proceeding.¹²

1
New York State Senate. New York Tax Law 1134 – Registration
2
Department of Taxation and Finance. Register as a Sales Tax Vendor
3
New York State Senate. New York Tax Law 1101 – Definitions
4
Department of Taxation and Finance. Registration Requirement for Businesses with No Physical Presence in New York State
5
Department of Taxation and Finance. Sales Tax Collection Requirement for Marketplace Providers – TSB-M-19(2.1)S
6
Department of Taxation and Finance. How to Register for New York State Sales Tax – Tax Bulletin ST-360
7
Department of Taxation and Finance. Instructions for Form DTF-17 Application to Register for a Sales Tax Certificate of Authority
8
Department of Taxation and Finance. Sales and Use Tax – Tax Expenditure Estimates
9
Department of Taxation and Finance. Sales Tax E-File Mandate for Monthly Sales Tax Filers
10
Department of Taxation and Finance. Form ST-120 Resale Certificate
11
Department of Taxation and Finance. Use Tax for Businesses
12
Department of Taxation and Finance. Recordkeeping Requirements for Sales Tax Vendors