My company (a manufacturing company) purchased a product that was a resale item to sell to a distributor in another state. We asked the vendor to ship it out to them directly to try and save on shipping costs. We were charged taxes because we are not registered in the state it was shipped to. We are tax exempt in our state. Shouldn't we be tax exempt for resales in other states?
2007-05-22 07:43:00 · 2 answers · asked by MR 2 in Business & Finance ➔ Taxes ➔ United States
Sorry...I left out what type of taxes. Sales taxes.
2007-05-22 07:45:45 · update #1
Generally, only if you are registered to collect sales taxes in the second state. A few states will accept just a general statement that the item is being resold but most want a number; your sales tax registration number for that state. Without that, you can not claim the exemption.
2007-05-22 07:46:53 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋
You should be tax exempt in all states. I think you need to set the record straight with who you are doing business with.
2007-05-22 07:49:27 · answer #2 · answered by Lily 7 · 0⤊ 0⤋