Does anyone have a Sales tax certificate of authority and Resale certificate so they can purchase on eBay tax free and then Ebay would collect the sales tax when the item is resold? I live in NY and this appears to be a legal way to not pay sales tax on purchases I intend to resell.
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By this I assume you have an ebay business account, yes ?
I may NOT have an ebay tax exemption permit, nor do I know of one. But i do own a business and am tax exempt of certain goods BUT only from certain places (wholesalers). I would assume ebay consists of sellers that are mainly not wholesalers, as it would be the sellers responsibility to send you a tax deducted invoice, no? If not, feel free to educate me. But i’d imagine holding a file with all of your purchases and sales and essentially doc it as you would writing off purchases for taxes annually. Seems like a hard thing to rely on each individual to help.
But like i said, I’m here to learn as well. Just throwing in my 2 cents
Edit: i understand you dont want to pay income tax on sales tax, im here to see others opinions as well bc this an interesting question
Yes. I buy tax free those items I intend to resell. Those items for personal use or for my personal collection I have to pay sales tax on.
If you are claiming exempt and not paying sales taxes on purchases you best be claiming income taxes on some profits. Tax evasion is a big boy crime and the government doesn’t like people so blatantly and boldly breaking the law. This is many steps above F&F transfers and the like.
As some additional background, most Ebay users are now aware that they are being automatically charged sales tax on all purchases depending on your state laws. In the past some sellers charged sales tax but most did not. Most of the collectibles I sell on eBay were originally purchased on ebay. My understanding is you can submit the proper paperwork to Ebay and sales tax would not be applied. The only problem is I think I would have to submit quarterly sales tax reports and keep better records of what is bought, sold and kept for personal collection.