Expert: Mike Wellman - 8/22/2007

Question
Hi - I have an antiques and collectibles business in NC.  I started out in my own store, but recently closed it and now selling from an antique mall.  The owner of the antique mall now collects and reports the sales tax.  She writes a check to me at the end of the month, less her commission and rent.  I started reporting 0 tax due on E500 but I'm concerned about whether to report Gross Receipts as I am making sales, but not paying the taxes.  How to handle this?  Report gross receipts but exempt from state tax since someone else is paying the tax?  Or simply submit a zero sales and use tax form all the way?  Thanks much!  Mary

Answer
The owner of the mall should either be filling out the E500 for you or supplying the information to you so you can complete it. If you complete it, report your gross sales and show the sales tax that has been withheld and paid. reporting zero tax due is not correct.