Sales Tax and Permits for Craft Show Vendors: The Basics
Rules differ by state and sometimes by city, so this guide covers the questions to ask rather than a single answer. It is general information, not legal or tax advice. Your state's department of revenue, or a local accountant, has the final word for your situation.
A seller's permit is usually the first step
Most states that charge sales tax require anyone selling goods to register first. The document is called different things depending on the state: a seller's permit, sales tax license, vendor's license, certificate of authority or transaction privilege license. Registration is normally done with the state department of revenue, often online.
Many organizers ask for a copy of your permit with the application, and some states issue a short-term or temporary permit for vendors who only sell at a few events a year. Ask your state which option fits.
Collecting and reporting the tax
- The rate usually depends on where the sale happens, not where you live, so a show in a different city or county can have a different rate
- Some states and cities let an organizer collect and remit tax on behalf of vendors; others expect each vendor to file. Ask the organizer which applies
- Keep a record of every sale and the tax collected, since filing is based on your own totals
- File on time even when you sold nothing in a period, if your state requires a zero return
Places with no state sales tax
Delaware, Montana, New Hampshire and Oregon do not charge a statewide sales tax. Alaska has none at the state level, but some Alaska cities and boroughs charge their own. Even in those places you may need a local business license, and you may owe tax in other states if you sell there.
Other paperwork to ask about
- A local business license or home occupation permit
- Health department rules if you sell food, including sampling
- Proof of liability insurance, which many shows require
- Extra permits for specific goods, such as handmade cosmetics, candles or anything that makes health claims
Who to ask
Start with your state department of revenue and the show organizer. A local Small Business Development Center or an accountant who works with small sellers can walk you through the first filing. Mention that you sell at craft shows, since many have a standard answer for it.
Keep reading
Keep track of the shows you want
Save listings, keep application deadlines in one place, and read what vendors who have worked a show say about it before you commit to a booth fee in your area.