Former_Member
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Selling Out of State?

My sister-in-law is setting up a craft fair booth to sell some of her stuff in Florida, and offered to sell my stuff too. (I would mail her my items and she would mail back what she doesn't sell.)

I live in Virginia, and she would be selling my items where she lives, in Florida. I'm wondering if there are any rules about this? Is it legal? Is there anything I need to know about taxes?

Thanks for any help!!! I really appreciate the awesome support of this team :)
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Re: Selling Out of State?

Sales tax is only applied to your state you reside in. No special rules. She sels, writes upma ticket for your records. That's it...good luck.
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Re: Selling Out of State?

If your sister is a Florida resident, she's 'suppose' to collect and remit Florida Sales tax to the State of Florida for any sales she makes within the state. I'm not sure how that works for vendors from out of state working here on a temporary basis.
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Re: Selling Out of State?

That is true, Terri. Didnt think of it that way. Though, if you are going to be taking credit for the sales (and not her) then i wouldnt think she'd have to collect. Gosh, kinda tricky, huh?
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Former_Member
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Re: Selling Out of State?

Your items are being sold in another state. Your sister is just being the salesperson. She will need to collect sales tax for all sales made to people in the state the items are selling in. She'll remit that to you and you'll have to pay it to that state.
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Former_Member
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Re: Selling Out of State?

Wow, that's more confusing than I thought! But thank you for clarifying Gena!

I was hoping that since I only have to pay sales tax for my Virginia sales here on Etsy, the same would apply for any physical sales that take place out of state. But I guess that's not right?
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Former_Member
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Re: Selling Out of State?

Gena is very correct... I've been digging around and fount this at SBA.gov ( http://www.sba.gov/community/blogs/community-blogs/business-law-advisor/how-legally-sell-your-goods-... ) :

"Do I pay sales tax to my home state or the state where I plan to sell?

Sales and Use Tax law follows the rates and procedures of where you are selling the goods. For example, if your business is in Florida, but you sell your goods at a flea market in Georgia, you will need to follow the Georgia rates and procedures.

How do I pay taxes?

If you are selling in the state where you live, paying taxes is straight forward, since there will only be few additional forms. One of which would specify what part of your taxes should be allocated to the event hosting locality. Check your stat's tax portal for information regarding multiple locations.

If you are from out-of-state, it can get more difficult because you are not familiar with the forms. You should receive information about paying taxes when you register with the state, but if not, ask. See if the state offers a Special Event Collection Report. This form is usually is accompanied with a payment coupon, and allows you to submit your paperwork and payment after the event.

In some areas, a tax collector will be onsite to collect the taxes immediately at the close of the event. This is done to make sure the local government collects the appropriate taxes. If this is the case, the tax collector will help you through the process; just ensure that you can verify their credentials."


So, I guess selling in a state makes that state a 'nexus' and since my goods would be sold in Florida, I will have to pay Florida sales tax.
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Re: Selling Out of State?

I haven't sold any of my jewelry while out of state yet but my family does go to an automotive flea market in PA every year to sell parts. We have a PA tax number that we claim on...
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