Consignment Sales (Publication 114)
Placing Items on Consignment

I only place items with consignees on consignment. Do I need a seller's permit?

No, you are not required to hold a seller's permit for items placed with a consignee on consignment. When a consignee sells goods on your behalf, they are responsible for the sale as the retailer.

Will I owe sales tax when someone sells an item for me on consignment?

No, unless the sale is made through a broker (see Broker Sales).

Example—typical consignment transaction

An antique bottle collector (the consignor) places five bottles on consignment with an antique store (the consignee). The store sells the bottles for $1,500 and pays the collector $750 when the sales are final. The consignee must pay sales tax on the full $1,500 it received for the bottles.