Frequently Asked Questions

1. Do sales tax, value-added tax (VAT), and other tax-related considerations apply in the
sale and purchase of household goods (HHG) items in PCS CASH?

Yes, they do apply.

Sales tax, value-added tax (VAT), and other tax-related considerations in the sale and purchase of
HHG items at PCS CASH webstore can be complex and vary based on the consignor/seller location
and the locations of the buyers. Below is an overview of these taxes and some key points to
consider:
Sales Tax:
Sales tax is a tax imposed by state or local governments on the sale of goods and services. It's
typically collected at the point of sale, and the rate and rules vary by jurisdiction. Here are some key
points:
 Nexus: PCS CASH responsibility to collect and remit sales tax depends on whether it has a
physical presence, or "nexus," in a particular state. It's important to understand the rules for
each state in which PCS CASH operates.
 Taxable Goods: In some states, certain household goods may be exempt from sales tax.
For instance, essential items like groceries or clothing may not be subject to tax.
 Exemption Certificates: If PCS CASH sells to other businesses (B2B), they may provide
PCS CASH with exemption certificates if they are exempt from paying sales tax on
purchases for resale. PCS CASH shall retain these certificates for its records.
 Online Marketplaces: If PCS CASH sells HHG items through online marketplaces like
Amazon or eBay, they may handle the collection and remittance of sales tax on PCS CASH’s
behalf. However, since PCS CASH also serves as an online marketplace, it may handle the
collection and remittance of sales tax for consignors that are also registered as businesses.
Value-Added Tax (VAT):
VAT is a consumption tax applied to the value added at each stage of the supply chain. It's
commonly used in many countries outside the United States. Here are some key points:
 International Sales: PCS CASH lists for sale HHG items from consignors/sellers in
countries with VAT. PCS CASH also sells HHG items to customers in countries with VAT.
Therefore PCS CASH may need to charge VAT on the sales and purchases of HHG items.
VAT rates, thresholds, and rules can vary significantly from one country to another.
 Distance Selling: The EU, for example, has special rules for distance selling (selling to
customers in other EU member states). Once PCS CASH exceeds specific sales thresholds,
it may need to register for VAT in the customer's country.
 VAT MOSS: In the EU, the VAT Mini One Stop Shop (VAT MOSS) allows businesses to
report and pay VAT for cross-border digital sales more easily.
Other Taxes:
Depending on your location and the nature of your business, you may encounter other taxes or fees
related to sales, including:

 Use Tax: A complementary tax to sales tax, use tax is typically owed by customers when
sales tax wasn't collected by the seller. Some states may require the seller to remit use tax
on behalf of the customer.
 Local Taxes: In addition to state taxes, many local governments impose additional taxes,
such as city or county sales taxes. It's essential to be aware of and comply with these local
requirements.
 Online Marketplace Fees: Online marketplaces may charge fees for facilitating sales.
These fees are not taxes, but they affect your overall costs.
Compliance and Record-Keeping:
To ensure compliance with tax laws, PCS CASH shall keep thorough records of sales and tax
collection, and consult with tax professionals or accountants who are familiar with e-commerce and
consignment businesses. Tax laws are subject to change, so it's important to stay updated and
adjust PCS CASH practices accordingly. At this time PCS CASH is in the process of using tax
automation software or services to help streamline tax collection and reporting.