If so, how come all the others don't charge sales tax? And if it is illegal, who do we report it to?
2007-09-28 08:56:31 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
If they are doing the sales as a business, then they are required to collect sales tax if they're in a state that has a sales tax, and most states do. If they're just doing a very occasional sale to get rid of extra stuff from around the house, they don't have to.
2007-09-28 14:36:53 · answer #1 · answered by Judy 7 · 0⤊ 0⤋
some flea market vendors do need to charge sales tax. some do it and you dont even know it they just include it in the price. flea market vendors generally have whats called a delivery or transient vendors license, which allows them to sell at multiple locations. some will just sell stuff and not have a license at all. for the vendor who has a license and reports their income it is imperative that they collect sales tax because they are charges sales tax on their returns, regardless of if they file as a business or individual. many vendors opt to get a license because even though they pay taxes they can get merchandise at wholesale prices and this increases their profit margin. so no, its not a scam.
2007-09-28 16:19:48 · answer #2 · answered by lilmama24 3 · 0⤊ 0⤋
Ironically, it's the ones that don't charge tax that are probably breaking the law.
Flea market vendors are required to obtain a sales tax license just like a store. This means that they will collect and remit sales taxes to the state on each sale.
2007-09-28 17:31:28 · answer #3 · answered by Wayne Z 7 · 0⤊ 0⤋
It's legal, just not required if the seller is an "occasional" business.
However, if someone makes their living doing flea market sales (and reports it as same to the IRS), they have to pay taxes on their earnings, so would have to add sales tax.
2007-09-28 16:04:57 · answer #4 · answered by Anonymous · 2⤊ 0⤋
If they have a tax id number, and report their sales as income, they are requied to charge sales tax.
It is really illegal to not, but as mentioned above, authorities do not normally go after these folks.
2007-09-28 16:03:41 · answer #5 · answered by Squat1 5 · 0⤊ 0⤋
Local governments don't tend to bother people selling their household discards once or twice a year. Just not worth the effort.
2007-09-28 16:00:25 · answer #6 · answered by Clown Knows 7 · 0⤊ 0⤋
that is a con.
2007-09-28 15:59:39 · answer #7 · answered by Anonymous · 0⤊ 3⤋