20 NYCRR § 4-3.4

General rule for determining primary use location

Official textus-ny/regstax.ny.gov

Unless the corporation meets the specific criteria and has sufficient information necessary to apply the special rules in section 4-3.3 of this Subpart, determining the primary use location depends on whether the customer is an individual customer or a business customer.

# (a)

Individual customer. In the case where the corporation’s customer is an individual, the primary use location is presumed to be at the customer’s billing address. If the corporation does not have the customer’s billing address, it must use reasonable approximation.

# (b)

Business customer.

# (1)

Except in instances where the business address presumption applies, the primary use location of the corporation’s business customer is presumed to be in New York State to the extent the information in the corporation’s books and records kept in the ordinary course of business, other than the billing address of the corporation’s customer, indicate that the customer’s use of the digital product or digital service is in New York State. Where the primary use location is in New York State and at least one other location, the corporation should source the receipts based on the percentage of use by the customer in each primary use location.

# (2)

The digital product or digital service is primarily used at the location of a third party (i.e., the consumer) only in the case of an intermediary transaction.

# (3)

If the corporation does not have adequate information to determine where the digital product or digital service is primarily used by the customer, the corporation must use reasonable approximation.

Source: official source document (DTF adopted rule text, December 2023 corporate reform)

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