New York Marketplace Facilitator Rules 2025: What Resellers Need to Know

Here’s a detailed guide to New York’s Sales Tax & Marketplace Facilitator Rules in 2025 — essential for resellers using marketplaces and/or operating direct sales channels. Covers thresholds, responsibilities, compliance, and practical tips.

1) Core Definitions & Status of Marketplace Facilitator Law

• Under New York law, a marketplace provider is an entity that:

  1. Provides a forum (online site, catalog, booth, etc.) for marketplace sellers to sell tangible personal property; and

  2. Collects payment (or contracts for collection) from customers for those items. NY State Tax Department

• Since June 1, 2019, marketplace providers have been required to collect and remit New York state & local sales tax on sales of tangible personal property they facilitate, regardless of whether the marketplace seller would otherwise meet NY’s nexus threshold. TaxJar+1

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2) Economic Nexus Thresholds in New York

• A person (seller or provider) with no physical presence in NY must register as a vendor if, during the immediately preceding four sales tax quarters:

  • Gross receipts from sales of tangible personal property delivered into New York exceed $500,000; and

  • More than 100 sales of tangible personal property are delivered into New York during that period. TaxJar+3NY State Tax Department+3NY State Tax Department+3

• The same thresholds apply to marketplace providers with no physical presence who facilitate or make those sales. If both tests (amount + number transactions) are met, they must register and collect tax. NY State Tax Department+2Avalara+2

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3) Who Collects Tax: Marketplace Provider vs. Marketplace Seller

• Marketplace providers are responsible for collecting and remitting NY sales tax on all taxable sales of tangible personal property they facilitate that are delivered to a New York address. This is true even if the seller is out-of-state or doesn’t meet nexus independently. NY State Tax Department+1

• Marketplace sellers are relieved from collecting tax on marketplace-facilitated tangible goods once the marketplace provider issues a Form ST-150 (Marketplace Provider Certificate of Collection) or has a publicly available agreement confirming that the provider will collect the tax. Sellers must keep this certificate for their records. NY State Tax Department+2TaxJar+2

• Sellers are still responsible for:

  • Collecting sales tax on any direct sales (outside the marketplace) if they meet nexus or physical presence thresholds. NY State Tax Department+1

  • Reporting facilitated sales (collected by marketplace) as non-taxable sales on their NY tax returns if the certificate is in place. NY State Tax Department

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4) Certificate of Collection & Liability Relief

• Form ST-150 must be issued by marketplace providers within 90 days of facilitating sales to sellers. Alternatively, the provider may have a publicly available agreement stating that they will collect the tax on all taxable sales they facilitate. NY State Tax Department+1

• Liability relief for both providers and sellers hinges on correct use of this certificate or agreement:

  • If marketplace provider fails to collect proper tax due to incorrect seller information, liability relief may apply. NY State Tax Department

  • If seller gets the certificate and doesn’t interfere with correct information, seller is relieved from collecting tax on facilitated sales. NY State Tax Department+1

• Affiliation rules also matter: if seller & provider are “affiliated,” some liability relief exceptions may not apply. NY State Tax Department+1

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5) Registration & Vendor Requirements

• Providers (marketplaces) and out-of-state sellers who meet threshold must register as a New York State sales tax vendor, obtaining a Certificate of Authority. NY State Tax Department+1

• Vendors must collect both state sales tax and appropriate local (city/county) sales tax rates, based on the delivery address for tangible goods. LedgerGurus+2TaxJar+2

• Even sellers who only sell via marketplaces may need a NY vendor registration to properly report non-marketplace sales and maintain records, especially if they also do direct sales or have physical presence. NY State Tax Department

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6) Transactions Counting Toward Threshold & What Counts as Sales

• Sales made through marketplace providers are included in a seller’s economic nexus thresholds. That means your marketplace sales + direct sales both count toward the $500,000 / 100-transaction tests. Galvix+2NY State Tax Department+2

• Tangible personal property is the main focus (physical goods). Some exempt items or non-taxable transactions may not require collecting tax, but in many cases, even exempt or wholesale/resale transactions count toward the threshold. Galvix+1

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7) What’s New or Important in 2025

• The rules around marketplace provider collection, provider certificate (ST-150), and the $500,000 / 100 transactions threshold are well established, but there is increasing enforcement and audits, with clearer guidance from NY’s Department of Taxation and Finance. NY State Tax Department+1

• More sellers are using software tools or tax service providers to track their NY sales across channels (direct site + marketplaces) to ensure they properly hit or don’t hit thresholds. LedgerGurus

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8) Case Study: Reseller’s NY Compliance Path

Profile: “BigCart Creations”

• Sells via Amazon, Etsy, and direct via Shopify.

• Delivered NY sales in past 4 quarters: $450,000 via marketplaces + $80,000 direct = $530,000 total; total sales count exceeds 100.

What they must do:

• Because of marketplace law, Amazon / Etsy collect tax on orders delivered to NY customers through them. They must issue Form ST-150 or have a seller agreement to provide a certificate of collection. BigCart Creations need to keep this documentation.

• For their direct Shopify sales: since their NY sales (direct + marketplace) push them over the $500,000 / 100 transaction threshold, they must be registered as a NY vendor and collect tax on direct sales. Their marketplace sales are already handled.

• For tax filings: Report direct sales as taxable; marketplace-facilitated sales as non-taxable (if certificate present). Keep records carefully because audits check that marketplace sales match what the marketplace provider reported.

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9) Practical How-To Steps for Resellers

1. Audit your NY delivered sales over the past four sales tax quarters (direct + marketplace). See if you cross $500,000 & 100 sales thresholds.

2. If you are a marketplace provider or use marketplaces, ensure the provider gives you Form ST-150 or has a publicly available agreement certifying collection.

3. If you haven’t registered as a vendor, do so via NY Business Express to get your Certificate of Authority. NY State Tax Department+1

4. Update checkout or sales channels (direct sales site) to collect NY sales tax for deliveries to NY addresses. Ensure the correct rate (state + local) is applied.

5. Maintain documentation:

   • Certificates from marketplace providers

   • Sales breakdown by channel

   • Sales numbers and gross receipts data for NY delivered goods

   • Records for exempt transactions, resale certificates if applicable

6. Use tax software or tools (TaxJar, Avalara, etc.) to help with tracking nexus, rate lookup, reporting, and automating filings.

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FAQ (Common Questions)