Sales Tax on Out of State Ebay Purchases

[videocards]

Hi I live in Florida and I don't have any company or anything, I work, from home, and I have my inventory at home and my clients are from another state not in FL, in this case do I have to pay Sales Tax by the end of year to state for Out-of-State Clients?

thanks

[emerald40]

Sales tax is only for those living in your state or in states you have a presence in.

I(From the ebay pages)

Here's the scoop on sales tax on eBay: In order to charge the buyer state sales tax, the seller has to be in the buyer's state or have a presence in that state, like a warehouse or a store. . And he can only charge tax according to that state's tax rate. In your case, that should be 6%.

[videocards]

so for me i should not pay state tax?

[emerald40]

I am not sure I am understanding.

I live in R.I.  When I buy here from a seller in RI he charges me sales tax.

If I buy out of state they do not.

I have never had a buyer yet from my home state so I do not charge a sales tax.

So you would only charge a sales tax from Floridians and then pay that to the State of Florida.

[duchess-at-speakeasy]

No, you do not collect sales tax from out-of-state customers or remit sales tax to any state. However, you should have a state tax number so that you can BUY inventory from in-state suppliers without paying sales tax.

If you are confused about sales tax, I suggest you consult Florida's department of revenue for more information.

~~C~~

[videocards]

i understand  thank you all for your help

[7606dennis]

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@videocards wrote:

Hi I live in Florida and I don't have any company or anything, I work, from home, and I have my inventory at home and my clients are from another state not in FL, in this case do I have to pay Sales Tax by the end of year to state for Out-of-State Clients?

thanks

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Actually, as a Florida business, you are required to collect sales tax on all sales delivered within the state of Florida.  Depending upon the volume of business that you do, you are required to submit a DR15 return either quarterly or monthly.  You should check with the Florida Department of Revenue web site.

With regard to collecting sales tax for other states, you shouldn't have to do it unless you have a nexus in that state.  However,there are some states that are trying to pass laws to change that.   Of course, the buyer may still owe use tax in their state, but that is on them.  You, however, would owe use tax to the state of Florida on all purchases you made out of state and had delivered to you here in Florida for which you did not pay sales tax and is not being held for resale.  Again, I suggest that you contact the Florida Department of Revenue web site.

By the way, all Florida residents are subject to use tax on out of state purchases, not just businesses.

[myboardid]

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@videocards wrote:
so for me i should not pay state tax?

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No. that is NOT what it means.  You ARE a business, even if you sell out of your home.  You are buying things to sell, hopefully at a profit.  It doesn't matter where you are buying these things.  That makes you a business.  It also means you need a state business license. That license means you collect sales tax from your in-state buyers only, and you send in the money you collect at the interval your state requires.  if you don't collect any money for that interval, you still need to send in paperwork indicating that you don't owe anything. 

Get in touch with your state revenue department, or whatever it is called in your state.  They will tell you how to go about doing this. 

[myboardid]

Now why couldn't I see all those perfectly good replies above mine before I sent my own reply?  I swear none of them were visible. 

[videocards]

So I have to pay tax to the state only for the all items that I bought from another state and delivered to FL, not paying tax for items that I have sold out of state?

[sam9876]

Huh?

[emerald40]

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@videocards wrote:

So I have to pay tax to the state only for the all items that I bought from another state and delivered to FL, not paying tax for items that I have sold out of state?

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No.

A seller from Florida that you buy from will charge you sales tax.  It is his responsibility to pay it back to the State of Florida.  A seller from outside of Floria will not charge you sales tax unless he has a physical presence (warehouse) in Florida.

And no as a seller you do not charge sales tax to out of the State of Florida buyers.

[videocards]

she said : You ARE a business, even if you sell out of your home. You are buying things to sell, hopefully at a profit. It doesn't matter where you are buying these things. That makes you a business. It also means you need a state business license. That license means you collect sales tax from your in-state buyers only, and you send in the money you collect at the interval your state requires. if you don't collect any money for that interval, you still need to send in paperwork indicating that you don't owe anything. ????

[emerald40]

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@videocards wrote:
she said : You ARE a business, even if you sell out of your home. You are buying things to sell, hopefully at a profit. It doesn't matter where you are buying these things. That makes you a business. It also means you need a state business license. That license means you collect sales tax from your in-state buyers only, and you send in the money you collect at the interval your state requires. if you don't collect any money for that interval, you still need to send in paperwork indicating that you don't owe anything. ????

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Yes.  That is exactly correct.

[videocards]

This stuff is really confusing me, if I buy items from people that live out of my state, and I sold those items to people that live out of my state, i still have to pay tax ?