Ebay Tax question. Most people don't charge taxes on Ebay, do the sellers just pocket it from the profits?

Question

Okay this applies to conventions, art festivals, flea markets, etc as well as Ebay. I've noticed most of the sellers (at conventions and flea markets as well as Ebay) don't charge a tax. (I.E. 99 cents sale so =1.08) tax. I'm assuming b/c it's waaayyy easier to not have change and it'd be hard to get change if you ran out.

1) So do they just take taxes from their profits or is there an exemption? How does that work, I'm thinking about selling my crafts at an art festival (Like instead of them charging 99 cents to do tax of like 1.08 is it really 92 cents that rounds up to a dollar)

thanks please elaborate and help my teacher won't answer my question

Answer 1

Believe me. E-Bay will provide a print out to the IRS each year for sales conducted through the site.

People may not be claiming their earnings yet, but they will have to.

There are costs associated with E-Bay selling, so they can take that off.

Answer 2

I believe that sales tax on Ebay is only necessary if the state requires a sales tax be added to the purchase for an item. For example sellers from Florida have to add sales tax because they are in Florida which requires it. However other states do not require sales tax for certain items or items under a certain price. Therefore they do not have to add sales tax.

I think for conventions, festivals, flea markets, the advertised price includes the sales tax so they do not charge the extra. Or again the state does not require sales tax be added. Connecticut for example only charges sales tax on certain items.