I have an elderly parent in Florida who has discovered she can buy and sell antique furniture through EBay. Her business started out small and now it is more than just a few pieces here and there. It is my understanding that she needs to address sales and use tax matters. What happens when the out of state seller did not collect any sales tax on an item?
Tax Professional Answers
The sales to out of state customers probably do not include an obligation to collect and remit tax, but your parent will need to be very good at keeping the shipping documents for every sale to prove that the items left the state via common carrier. I would also caution that your parent should not deliver furniture to other statute personally or (s)he could be considered a dealer in the state of delivery as well. Common carrier is much safer from a tax perspective.
When you parent registers to be a vendor there will be an issue that comes up regarding the past sales. It might be better to register through the voluntary disclosure program to remove any penalties and make the process much easier.
I hope this answers you question and good luck with the new business! If you have more questions, then I would be glad to help.
James Sutton, CPA, Esq.
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