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when you resale them? why or why not?

2007-07-03 02:47:18 · 2 answers · asked by kayzarty 2 in Business & Finance Taxes United States

2 answers

When you make a purchase using your resale license (wholesale) you avoid the sales tax but must charge sales tax when you sell it unless you are also selling it to someone who has a resale license on file with you. As sales tax is a state issue the rules are a little different depending on the state but this is the general idea.

2007-07-03 03:28:11 · answer #1 · answered by ? 6 · 1 0

If you are purchasing taxable items for resale, you should have a resellers license from your state. You wouldn't pay tax on the purchase, but would charge tax on the resale. Basically it gets taxed once, to the ultimate user.

2007-07-03 10:50:06 · answer #2 · answered by Judy 7 · 1 0

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