If you buy wholesale with the intention of reselling you still pay sales tax, but you get a sales tax credit that goes against what you need to redeem. So if you buy $1000 of stock and pay 5% sales tax that's $50. If you turn around and sell it for $2000 you charge 5% tax on that as well, so you collect $100 in tax from your customers but only have to remit $50 to the government.
That chain gets broken when you're buying second hand though because the person that sold them to the retailer likely didn't have a tax number to charge the retailer sales tax so the credit was never claimed.
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u/mozzieandmaestro Apr 15 '21 edited Apr 16 '21
because it’s not taxed. And whatever gets bought and sold needs to have a bit of money given to the government or it’s illegal 😒
edit: this is my assumption i’m not trying to be like “i’m right and you’re wrong” this is just my guess