New York – State Issues Advisory Opinion Regarding Independent Software Vendors Nexus In An Online Marketplace

Advisory Opinion TSB-A-19(1)S answers the Petitioner’s question whether, as a result of operating an online marketplace in which it facilitates taxable sales by independent software vendors (ISVs), it qualifies as a vendor for sales tax purposes and what the consequences of such status would be. “We conclude that, assuming that Petitioner has sufficient nexus with the State and the ISV qualifies as a vendor for sales tax purposes, it is within the discretion of the Commissioner of Taxation and Finance to treat Petitioner as a vendor based on such activities, in which case Petitioner would be jointly liable with the ISV to collect sales tax and must assume all the responsibilities of a vendor.”

For More Information: Advisory Opinion TSB-A-19(1)S