Am I exempted from sales tax liability on mentioning "items sold are for re-sale only" on the invoice?

Answer 1

Nope. Not unless you are collecting resale certificates from those purchasers. (Assuming the sale is in your home state)

Besides, you should just be charging, collecting and remitting. It's not really your liability unless you fail to charge, collect, and remit.

Out of state sales are another issue. Contact a CPA for help.

Answer 2

No just stating for resale is not evidence of exemption. Unless the exemption is by statute, such as some agricultral exemptions, you should maintain Sales Tax Exemptions Cetificates from your customers and keep them based on the retention schudle in your home state. Under no circumstances do you acccept a copy of thier registration as an exemption certificate. A copy of the registration certificate, Also knowns as the Business License in some states, does not limit your Sales Tax Liability.


Remember this also applies to the self assesed use tax. If you are the end user of a product you may be liable for state use tax on an item and depending on your state and the nature of your business certain rules apply to those items as well.


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