How to Calculate Sales Tax at Flea Markets

Flea market vendors are required to collect sales tax in some states.

Some state and local municipalities require that vendors collect sales tax on items sold at flea markets. The taxing authorities may differ on the exact items that should incur a sales tax charge, and rates will differ based on the locale of the flea market, but the method of calculating sales tax at flea markets is the same for every vendor. Every sale should be properly recorded so that you can complete the sales tax paperwork on the filing due date and remit payment to the taxing authority for all sales tax collected.

Things You'll Need

• Computer with Internet connection
• Notebook

Instructions

1. Contact the state office that handles sales tax and obtain a list of items that are excluded from sales tax at flea markets. Some state agencies have the information on the agency website.

2. Register with the state to receive a permit to collect sales tax. Many states offer online registration. Some states offer short-term permits, such as 30-day permits for vendors that do not intend to sell on a regular basis. The state may assign you a unique taxpayer number to use when remitting sales tax paperwork and collections.

3. Determine the appropriate sales tax rate based on the location of the flea market. Each local municipality may have a different sales tax rate, so contact the local tax authority for the county/parish/city where the flea market is located and obtain the appropriate sales tax rate on product sales.

4. Add together all the local and state sales tax rates to gain the total sales tax rate to charge on sales.

5. Multiply the total amount on all sales of taxable items by the sales tax rate. For example, if you make a sale of $20 and the sales tax rate is 5 percent, you should charge $1 in sales tax on the sale.

6. Record the sale in a notebook or spreadsheet program. At minimum, record the date of the sale, a description of the item(s) sold, the total amount of the sale and the sales tax collected on the sale.

Tips & Warnings

• Make sure you file the required sales tax paperwork with the taxing authority by the due date required. Remit payment of collected sales tax with the paperwork.

References

• "Principles of Accounting"; A. Douglas Hillman, Richard F. Kochanek, Corine T. Norgaard; 1991
• Texas Comptroller of Public Accounts: Flea Markets--Sales and Use Tax Responsibilities and Requirements
• Comptroller of Maryland: Flea Market Sales