If you have a revenue tax in New York, you must register with the New York Department of Taxation and Finance and collect, collect and transfer the corresponding tax to the state. The a-state seller without a physical presence in a state can set up a VAT Nexus as follows: Once you have successfully registered to collect New York VAT, you must apply the correct rate to all taxable sales, pay VAT, file timely returns to the New York Department of Taxation and Finance and keep excellent ratings. Here`s what you need to know to keep everything organized and in check. This principle of ignorance of subseership transfers also applies to free loans, including loans to a museum5.5 The result of this rule of ignorance is that the lender (unlike the loan museum) is treated in the state as a ticking of works of art, to the extent that the artwork is awarded free of charge to a state museum. Therefore, a user fee would be imposed if our Connecticut collector lent the painting that has been hanging on the wall of their Connecticut home for the past 10 years free of charge. Here too, the exception applies since then, when his collector, when he bought the painting, did not have a fixed home in the state. If our Connecticut art collector rented the painting at the museum for a fair rent, the sales tax would be levied on the rent. The prohibition on sales tax for the determination of place of residence is particularly weak and applies to anyone who has a “permanent place of residence” within the state, even a pied-e-land, regardless of how often that person visits that place of residence.3 Therefore, persons who are primarily elsewhere, including outside the United States , are residents of the New York Tax District (for sale and use) when purchasing artwork for their New York vacation home. for the simple reason that they have a holiday home in New York for which they can buy works of art. Streamlined Sales and Use Tax Agreement (SSUTA) or Streamlined Sales Tax (SST) is a multi-state attempt to simplify the management and cost of sales and user fees for remote sellers. Remote sellers can register simultaneously in multiple states through the Optimized VAT Registration System (SSTRS). Filing a tax return in New York is a two-step process of providing the necessary sales data (filing a tax return) and transferring the tax dollars collected (if any) to the New York Department of Taxation and Finance.
The registration process requires you to indicate your total turnover in the state, the amount of VAT collected and the location of each sale. I regularly advise art collectors on the impact of their transactions on taxes on turnover, and more often than you think, collectors are amazed at what I have to say. As a tax lawyer, what surprises me the most is that lay people expect the VAT rules to meet their expectations about the behaviour of tax rules. Nothing in taxes is easy, not even a supposedly manageable VAT. It is the first tax rule, every tax. It is above all the New York VAT system that has its share in the counter-intuitive rules. This article attempts to clarify some common misunderstandings about New York`s tva rules, such as those applicable to art collectors, and should be relevant to any collector who sells or buys works of art in New York.