Re: [tips_and_tricks] IRS on ebay
- I think you have fallen prey to an internet rumor. When selling things
the only concern is state sales tax (reporting and payment of). Most
states impose a sales tax on just about everything. (For the guy in
Florida trying to register the car, some states have the balls to
charge a "use" tax on cars that you buy out of state but bring in and
register. Oddly enough the "use tax" rate is the SAME as the "sales
tax") However, most food items are not taxed but prepared foods (fast
food and restaurants) are taxed by requiring the retail seller to
impose and collect a sales tax. The only concern is about being either
a, "wholesaler" or "retailer" as it indicates who collects the sales
tax and forwards it to the state. Most states have a provision for
obtaining a "sellers permit". By obtaining a "sellers permit" you can
buy product (inventory) from various "wholesalers" without having to
pay any sales tax. You are expected to impose, collect and forward to
the state a sales tax on each sale you make to anyone not also holding
a "sellers permit". The retailer cannot even choose to pay the tax to
the wholesaler based on that price and then just absorb it into his
retail price. THE STATE WON'T LET YOU! The state wants the tax applied
to the retail price as it means more money for the state. The retailer
usually reports and forwards the collected sales tax to the state on a
There are presently two exceptions. There is a federally imposed
"moratorium" on taxing sales made over the internet and a seller
(retailer) selling to a buyer located outside the state. However, most
states consider it the buyer's responsibility to pay the sales tax on
any items purchased outside the state and brought into the state.
Hope the above info helps.
On Nov 30, 2005, at 12:47 AM, pd wrote:
> Why not contact E-bay? That is one company that really seems to be on
> top of its game. They will know any and all rules pertaining to their
> company. pd
> hobot <hobot@...> wrote:I havn't sold on ebay but
> someone on another list
>> mentioned a new 'law' that says if six items are sold,
>> they are a dealer and need a license. Anyone have
>> insights on this.
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