I don’t pay sales tax on qualifying cards I buy for resale from eBay, Fanatics, Alt, Whatnot, Goldin, DealMotion, etc. I’m in California.
I don’t pay sales tax on qualifying cards I buy for resale from eBay, Fanatics, Alt, Whatnot, Goldin, DealMotion, etc. I’m in California. If you’re also in California buying inventory for resale and you don’t have a resale certificate, think about the math. If you and I are bidding on the same $1,000 card and you’re paying roughly another 10% in sales tax while I’m making a qualifying purchase for resale, I effectively have about a 10% cost advantage before either of us even sells the card. Now do that over hundreds of thousands of dollars in purchases. That matters. Stuff like this separates visiting the hobby from actually building a business in it. Nobody taught me this stuff when I was coming up. I learned a lot of it the expensive way. If you’re serious about buying and selling cards for a living, learn what a resale certificate is, when you can use one, and what your responsibilities are once you have one. And talk to a tax professional (aka not me)