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Do consignees pay tax and permits?

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Yes, of course, like any business involved in selling goods-are generally required to comply with tax regulations and obtain the necessary permits to operate legally. Consignees usually have to pay sales tax or VAT on the sales of goods, depending on the jurisdiction. They may also be responsible for income tax on profits earned through commissions or markup.

Operating permits or business licenses are typically required to legally run a retail or sales business. Specific permits may be needed for the type of goods sold. The exact requirements depend on the governmental issuances. It is always a good idea for the consignee to consult with a local tax professional or business advisor to ensure full compliance.
 
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