Is an EIN the same as a sales tax ID or NYS vendor ID?
An employer identification number (EIN) is different than a NY sales tax ID or a NYS vendor ID number. An EIN is issued by the IRS and is used to identify a business entity for federal business tax reporting purposes. An EIN is also called a federal tax identification number and a federal employer identification number (FEIN).
How to get a NYS vendor ID and register as a vendor in New York State?
To register as a vendor in New York State, you must complete a form and submit it and any other relevant information to the contracting agency. The agency will then initiate the vendor registration process on behalf of the vendor, bidder, and their subcontractors with the Office of the State Comptroller.
Once the registration is processed and approved, your business is registered to the New York State Vendor File and will receive a unique 10-digit vendor identification number (NYS vendor ID) for use on all future transactions with all New York State agencies.
With the NYS vendor ID, you can register on VendRep and complete your vendor responsibility registration. By law, New York State can only award contracts to responsible vendors. If the contract is valued at more than $100,000, you must file a Vendor Responsibility Questionnaire with the state contracting entity. The questionnaire provides vendors with an opportunity to self-disclose any issues and provide necessary information, which the contracting entity will use as part of its determination.
Having the NYS vendor ID also means you can access the Statewide Financial Management System (SFS) - an online portal that allows vendors to centrally manage transaction-related information, including submitting invoices and viewing payments.
Does a subcontractor need a NYS vendor identification number?
If a subcontractor is engaged to perform part of the work — and is known at the time of the contract award and the subcontract is valued at $100,000 or more — the state contracting agency will conduct a separate responsibility review.
To support this review, the subcontractor must submit a separate questionnaire using its own New York State Vendor ID (not the prime contractor's). If the subcontractor doesn’t have one, the contracting agency will request a NYS Vendor ID on their behalf.
Note: A subcontractor includes any company that receives funds from a vendor to perform work on a state-awarded contract.
Do I need a NY sales tax ID?
Any business that sells tangible personal property or provides taxable services in New York State must register with the NY Department of Taxation and Finance and obtain a sales tax Certificate of Authority. While many services are not subject to state sales tax, certain services (such as barber and manicure services) may be subject to local sales tax.
A Certificate of Authority enables your business to collect sales tax on taxable sales and accept most NY State sales tax exemption certificates. If you have multiple business locations, you must have a Certificate of Authority for each location. Certificates cannot be transferred. If you change business structures (ex. from sole proprietorship to LLC), you must apply for a new Certificate of Authority.
Note: The term “Certificate of Authority” is also used in many states for the document certifying that a company is permitted to do business in a state other than its original formation state.
How to register for a NY sales tax ID
To receive a New York sales tax ID, your business must register for a sales tax Certificate of Authority with the New York Department of Tax and Finance or via the state’s Business Express portal - a process also known as “sales tax vendor registration”.
The registration process requires having certain information on hand, including the following:
- Reasons for the application
- Contact information for the business (ex. legal name, EIN, address)
- Entity type (ex., Corporation LLC)
- Date your business will commence for sales tax purposes
- Bank account information
- License numbers (if applicable)
- Information on business contacts and responsible persons*
*Business contacts include officers, members, and shareholders with at least 20% ownership or profit distribution interest. Responsible persons include individuals who have certain duties or authority related to the business, such as a tax manager, or have authority over business decisions. For more information, see the Business Contact and Responsible Person Questionnaire.
If your business expects to make taxable sales or provide taxable services, it must register with the Department 20 days prior to beginning operations.
