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TexLaw
TexLaw, Attorney
Category: Business Law
Satisfied Customers: 4430
Experience:  Internationational Commercial Attorney
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Hi, my sister has a small booth in a local flea market in queens

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Hi, my sister has a small booth in a local flea market in queens NY. the owner of the stablishment (real state), asked her for a dba/business cerificate and a EIN.. and that is what my sister got.
now, some pepole are telleing her that she has to aplly for a certificate4 of authority to collect sales tax,.. and that will imply for my sister to file a report, every 3 months.
does she ned to do that? because other pepole also say that tFlea markets do not collect sales tax.. and if that is the case wjhy does she need a certificate of authority or to report.
her sales are in a verage of 5 $.. per person.. it is used merchandise.
please advise
Hi,

Thank you for your question.

What is she selling?
Customer: replied 3 years ago.

USED CLOTHES, AND SOME small used toys, cups, used books..
all used merchandise

Sales tax applies to the sale of any goods (except for clothes under $110 per item), no matter if it is used, and thus she does need to go ahead and register to collect sales tax to be a safe. So she will have to collect sales tax on some of the items.

Failure to collect sales tax can result in penalties and interest.

Here is a guide to sales tax and registration: http://www.tax.ny.gov/pdf/publications/sales/pub750.pdf

She will need to register here: http://www.tax.ny.gov/bus/st/register.htm
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