I’m wondering if it would be possible to set up a real side business around grading cards? I’m located in Europe though, so I’m not sure if all US answers would really apply, there’s a few thins I’m struggling with, I’ll list them here.
As I understand normally business that buy/sell goods from suppliers to customers pay 21% VAT/tax when buying from the supplier and in the end add 21% VAT to the final sale price. It doesn’t matter a lot because all their competitors are businesses and thus everyone shares similar costs.
It gets more interesting with grading cards though and there comes my confusion. For purchase I either have the option to buy it from Europe, if I buy it from a non-company then I don’t pay taxes, if I buy it from outside Europe then I need to pay taxes on import (even if bought from a non-company) or I can mark a low value but that’s not really legal I believe.
And then when selling I would need to add VAT too? But I compete against other sellers that don’t need to care about having a business as they are private collectors.
I’m a bit hesitant to ask for more information from the tax services as then (maybe paranoia) but they might make a fuss about my personal collection and selling/buying I do for that sometimes, so I’m hoping that somebody can help me with this. I understand that this post is a bit vague but I can’t find a way right now to write it down in a more clear and concise way. Of course experiences from strictly US businesses are welcome too!