I sometimes buy goods from online retail stores to resell them. I was wondering, when they sells, if it's possible to not pay the sales tax for those particular items since I paid for them already? Or is it possible to ask the retail store to waive the sales tax by sending in my seller's permit? (although I'm most definite they won't) Or lastly, can I ship them to a friend of mine in a different (pretty rural) state where many online merchants don't charge taxes for?
2007-05-15 03:02:26 · 7 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You can do whatever you want but the legal way to do this is to use your merchant account number to avoid paying sales tax when you purchase. Items purchased for resale do not pay sales tax. Additionally, if you are shipping to a different state, you do not collect sales tax because the tax is owed in that state. The individual receiving the item would be responsible for paying the sales tax since you are not a merchant in that state.
2007-05-15 03:05:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If you are selling goods, you must collect and render sales taxes on taxable sales.
If you are buying for resale, the vendor will not charge you sales tax on those purchases. They will need your tax number and most want a copy of your certificate.
Don't waste time and $$$ shipping around to avoid paying. The excess shipping charges would probably be more than the taxes unless you're selling high-cost goods. And legally if the sale is taxable you'll be expected to pay the use tax on it when it's shipped to you. Most states don't bother going after ordinary citizens for that, but they will go after a retailer who has a tax cert for collecting sales taxes.
2007-05-15 03:09:54 · answer #2 · answered by Bostonian In MO 7 · 0⤊ 0⤋
It seems like you might want to find an ACTUAL wholesaler and not just a retailer that is selling things for cheap.. Go to your state's secretary of state website and find out when it takes to get a DBA or LLC. Once you have the federal tax ID number and a sales and use tax, then you can search for a wholesaler that will NEVER charge you sales tax..
And you do not have to collect sales tax to those if you are shipping outside of the state you are doing business in.
2007-05-15 09:51:53 · answer #3 · answered by lindsay g 2 · 0⤊ 0⤋
If you have a business license, that is a dba with the state/county you live in, you will have a resale number. When you buy goods for resale, you give the other merchant your resale number and they sell you the goods usually without sales tax. However, if you have a resale number, the state/county you live in will expect you to report your sales and pay sales tax for the goods that qualify. Contact your state and/or county department of revenue for details.
I've bought/sold good and had resale numbers from: MA, CT, FL
2007-05-15 03:14:09 · answer #4 · answered by Anonymous · 0⤊ 0⤋
You're starting to sound like a conservative. Say 20% of your income goes to sales taxes but you have no income tax, thats still better than 30% income taxes like it is now. If it was up to the democrats you would be paying 50% income tax plus 15% VAT tax.
2016-05-18 06:54:35 · answer #5 · answered by deloris 4 · 0⤊ 0⤋
Contact the seller to find out how to not pay sales tax on items to resale. They may request a sales tax exemption form (different on each state)
2007-05-15 03:07:05 · answer #6 · answered by Red3Biggs 2 · 0⤊ 0⤋
Did you know that you only have to pay sales tax if the person purchasing the item lives in the same state as you. Also, you don't have collect sales tax on an item until you sell a certain Dollar amount worth of items in a calendar year. So it does depend on how much in sales you plan to do. You do have to have a sales tax license to legally collect sales tax.
2007-05-15 03:06:44 · answer #7 · answered by Erica M 2 · 0⤊ 3⤋