posted on December 5, 2004 10:01:25 AM
I mentioned to my husband this morning that I sold an item to someone in our city and that I delivered it to her. Sure enough, I sold another of the same item to the same person and will be delivering this one, too.
Anyway, my husband has a store and he asked me was I charging the person any sales tax? I never thought of charging sales tax to any buyers from my state for these little 9.99-30.00 items I sell. (and I certainly won't charge this buyer any sales tax when it wasn't in my auction description!)
In a month and half I've only made, maybe, $200.00. He said my business, hopefully, will grow and I really should start out charging instate sales tax.
Should I charge sales tax to instate buyers? Do you know how I go about that? Do I have to get forms from somewhere? Sorry to sound so dumb, but just wondering what you all do about sales tax. Thank you!
posted on December 5, 2004 11:46:40 AM
I put in my auctions that Indiana (my state) residents must pay sales tax. I don't often get bidders from Indiana, but when I do, yes they have to pay the sales tax.
If you intend to truly run your auctions like a business, including keeping track of expenses and paying income taxes on your profits, you need to collect sales tax too.
When I got started I went to my local chamber of commerce and they had a packet for new businesses with all of the necesssary forms. I just have to keep track of my collected taxes and write a check to the state once a year. It could, of course, be different in your state.
[ edited by cherishedclutter on Dec 5, 2004 01:08 PM ]
posted on December 5, 2004 12:43:54 PM
In order to charge sales Tax, you'll need to register your Buss and get a Tax number.
Otherwise you can't legally collect.
posted on December 5, 2004 01:05:34 PM
I appreciate this help. I do want to look at this as a business, even if I am very small now and just starting out. I would appreciate any other advice on collecting sales tax. Thank you so much!
