OT: Sales Tax when reselling tickets

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This topic contains 2 replies, has 3 voices, and was last updated by  Adam 5 months, 2 weeks ago.

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    Why don't resale ticket websites like Stub hub, Tick pick, Vivid seats, etc. charge sales tax when tickets are being sold?

    The sales tax requirements are different for each state, but I was wondering specifically about NY.
    New York State Tax Bulletin (ST-8) Admission Charges to a Place of Amusement states the following: “Examples of taxable admission charges include, but are not limited to, admissions charges to professional or college sporting events including: football, baseball, basketball, or hockey games.” When the tickets are posted on the resale website, there is not an option to charge sales tax on the sale of the ticket. For example, Stubhub and vivid seat charges the seller a fee to sell the tickets on its website but it doesn't have any charges for sales tax.

    Am I missing something here?

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    Presumably StudHub etc are operating outside of NY state with no physical location.
    One day they'll be caught, similar to the Wayfair decision, but until that happens I think they are skirting the law.
    Also presumably the original sales tax was paid when the tickets were first issued, so then it also becomes a resale issue, but this does not change the sales tax implications.

    Memento Mori - Kingston NY CPA & EA (SUNY Albany 2002)

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    Its included in the fees..

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