Do I need a New York Certificate of Authority to sell on Etsy if Etsy collects sales tax?

Hi! In New York, if you’re a NY-based seller making taxable sales (like most physical handmade goods) you generally still need a New York Certificate of Authority and you still file sales tax returns—even when Etsy collects and remits the sales tax as a marketplace facilitator. The return usually won’t create a payment for those Etsy-facilitated orders, because you report the sales but treat them as “marketplace collected”/non-taxable on your return, so the tax due on those transactions is basically zero.

A couple key points that usually clear up the confusion:

• Etsy collecting/remitting doesn’t automatically remove your NY registration requirement. NY’s guidance specifically says a home-based NY business selling only through a marketplace provider that collects tax still needs to register and file.
• What you report on the NY return: you typically include your Etsy sales in your gross sales, then back them out in the part of the return meant for sales where tax was collected/remitted by a marketplace provider (so you’re not paying tax twice). You’re essentially reporting, “These sales happened, but the marketplace handled the tax.”

When you would owe tax (or have more to do)

• Any non-Etsy sales (in-person markets, your own website, custom invoices, local pickup, etc.) where you are the seller of record collecting tax.
• Taxable transactions that aren’t “sales of tangible personal property.” NY’s rules carve this out—so if you sell something that isn’t treated as tangible personal property for NY purposes, you may have different responsibilities even if a marketplace is involved (this is one reason it’s worth double-checking your product type).
• Exempt sales / resale certificates / wholesale can also change what you report, even if tax due is zero.

Two practical tips so you’re covered:

1. Save Etsy’s marketplace collection documentation (NY references a “Certificate of Collection” concept for marketplace providers). Even if you never get a form directly, keep whatever Etsy provides that shows they collect/remit NY sales tax, plus your order records.
2. If you do register, don’t ignore filings. Once you have a Certificate of Authority, NY generally expects you to file on your assigned schedule even in periods where you owe nothing (it can be a “zero due” filing).

If you tell me what you sell (physical items vs digital downloads vs services) and whether you sell anywhere besides Etsy, I can point you to the cleanest “yes/no” for your exact situation and what your NY return would look like in practice.