The state of has passed legislation known as the “commission-agreement provision,” which creates a rebuttable presumption that a person (seller) making sales of tangible personal property or services is soliciting business through an independent contractor or other representative if the seller enters into an agreement with a New York resident in which the resident, in exchange for a commission or other compensation, makes sales of tangible personal property or services (click through nexus). You may want to check out Tax Shark for more.
If the total gross receipts from sales by the seller to customers in the state who are referred to the seller by all residents with this form of agreement with the seller exceed $10,000 over the preceding four quarterly periods ending on the last day of February, May, August, and November, the presumption applies. The assumption can be rebutted by demonstrating that during the four preceding quarterly periods, the resident with whom the seller has an arrangement did not participate in any solicitation in New York on behalf of the seller that satisfied the nexus provision of the United States Constitution. 1101(b)(8) of the New York Tax Law (vi). Companies in the technology industry can review their affiliate programmes to determine which states have “Amazon Laws,” “affiliate nexus” rules, or “Click-Through Nexus” rules. This is a complex environment that necessitates continuous supervision. California’s “Amazon Rule” was repealed for a year at the time of publishing. A sales representative sitting in a home office in a state other than where corporate headquarters is located is an obvious example of an occurrence that causes sales tax nexus in the state where the sales representative is situated. What happens, though, when the sales representative travels to meet with prospects or clients in other states? When a sales representative meets with a prospect to show their product, this form of operation is popular in the technology industry.