Tax Information With A Mother's Touch
Published by Eva Rosenberg, MBA, EA
Volume 6, Issue 276 September 17, 2004
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Tax Information With A Mother's Touch Published by Eva Rosenberg, MBA, EA Volume 6, Issue 276 September 17, 2004 |
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 » From: Brockton, NY Dear TaxMama: If I host an Internet based auction site in New York State where individuals place items for sale and others bid on them, like an eBay service, would I be required to collect sales tax if I charge the users a listing fee and a small percentage of their sale amount if the item sells? I would not be selling a tangible item, only providing the online auction service and collecting posting fees and/or a comission. Thank you. Sincerely, Lance  Hi Lance, The only thing about the way you describe your business, that concerns me is that you receive a percentage of their sales. Does eBay do that, too? If so, do they charge sales tax? Why don't you pull up eBay's contracts and vendor agreements and model your own after theirs. They aren't collecting sales taxes from their merchants, are they? A lot will depend on the state of NY's definition of what's subject to sales tax. If services are exempt, you should be home free. Make sure that you define your fee as a service, not a product. Be sure to check with the NY Dept of Finance. With what you're doing, you really should have a good local tax pro in your corner and have that person help you with the research. Good luck on your new venture. Best wishes, Eva Rosenberg Your TaxMama  |
 
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| Library of Congress - ISSN 1532-0790 Copyright © 2000-2007 - Eva Rosenberg |
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