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Sales Tax on Bricklink

Apologies if this question belongs elsewhere- I couldn't find a more suitable place for this question (or the answer, for that matter) on the forum.  Please move if needed.

I've decided to take my Lego hobby to the next level and open up a Bricklink Store.  Certainly will be a hobby, as I don't intend on having a very large operation.  That said, I was curious if I should be thinking about charging Sales Tax on sales in my own state.  I have seen some Bricklink stores with that policy, but certainly not all. Is there a best practice for Sales Tax on Bricklink?   Any help appreciated!
Jackad7kiki180703

Comments

  • Switchfoot55Switchfoot55 Washington, USAMember Posts: 282
    edited December 2016
    Though I can't speak specifically about sales tax with Bricklink, I would highly recommend at least accounting for it somewhere as this would be considered earned income, and therefore taxable by Uncle Sam. 
  • DawnDawn GoldMember Posts: 226
    It is not about best practice but about the Law.
    If you have a business and you do a online sale into your state, you must charge taxes whether you are a official store or just a hobby store.
    Reality is that only 'real' businesses, (registered, filling taxes, etc) for their Bricklink stores charge the sales tax.
  • oldtodd33oldtodd33 Denver 4800 miles to BillundMember Posts: 1,763
    I would check with your own state myself as each state varies for what you would be charging. Then I would assume that you would have to send a check to the state for the taxes collected. After that keep a very good record of what your sales were and taxes collected and you will have to report your income to the feds and the state. You might want to talk to a CPA for all of this. And don't make any mistakes while you are collecting the taxes as tax agencies talk to each other and if one finds out you made a mistake they WILL tell the others and you could wind up getting audited for your personal taxes as well. Just my experience.
  • LegoTTLegoTT Member Posts: 354
    Thanks, everyone!  @Dawn you're right- I wasn't implying that charging tax is a 'best practice' as opposed to the law.  I am trying to understand how to actually charge it on Bricklink.  I'm guessing I would have to calculate it and add it between order submission and invoicing?   Thanks again for the helpful comments!
  • Pitfall69Pitfall69 3,743 miles to Legoboy's houseMember Posts: 10,168
    I would definitely check with certified CPA. In many states, if the entity is NOT in the state, you may not be authorized to charge sales tax. It is the whole interstate commerce debate.
  • BrickCreatorBrickCreator Cheesehead, Born and BredMember Posts: 133
    Online business charge sales tax to customers located in their own state. The ins and outs of when to collect will vary by state, so it is best to check. For me personally, I have had about 81 orders in my store and only one of them has been to my own state...
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