Do I have to pay sales tax on items I purchased wholesale and sold on ebay?

Hello Mails

April 4, 2010

To elaborate:
I just started a little business, selling items in a local flea market. I have registered a business name with the state and feds, have an EIN and NC State sales and use tax number. I know I have to pay (charge, whichever way you look at it) sales tax on items sold at my business come the beginning of my tax year (march 1st).

BUT- If some items dont happen to sell in my store, and I decide to sell them on Ebay or Craigslist…etc, am I required to pay (report/deduct) tax money from that profit to be reported to the IRS/State?

Any advice, resources, and of course straight forward answers would be greatly appreciated.


2 thoughts on “Do I have to pay sales tax on items I purchased wholesale and sold on ebay?”

  1. You are required to collect sales tax (and remit it to NC taxing authority) for items sold to customers in NC even online (assuming NC is your only business location). Other people get a pass, but may be required to remit sales tax to their own state, but that is not your problem.

    Note: this issue went to the Supreme Court a number of years ago. They ruled that currently there is no requirement for a company to collect out-of-state sales tax, but congress could make a law and it would be constitutional. So far, congress hasn’t.

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