A. The consignee must report gross receipts from the sales of goods on Form OS-114, Line 1, Column 1. The consignee also reports the gross receipts from the commission or fee on Line 3, Column 1, of the return as a taxable sales agent service. If the gross receipts from the commission or fee are not taxable, the consignee must deduct it on Line C, Other Adjustments - Labor and Services, Column 1, and describe why the commission or fee is not taxable (such as being for the sale of a work of art; see Conn. Gen. Stat. § 12-407(a)(37)(S)). If the consignment shop is selling items of tangible personal property subject to the 7% rate, such as jewelry, report gross receipts from the sale of goods on Form OS-114, Line 1, Column 2 instead of Column 1.
This answer is intended to provide general information concerning a frequently asked question about a current position, policy, or practice associated with the taxes administered by the Connecticut Department of Revenue Services. It may include an informal interpretation of Connecticut tax law by the Department of Revenue Services (DRS). However, it is not intended to serve as a legal ruling.