What is the difference between Tax ID and Sales Tax Resale Number?

Question

What is the difference between Tax ID and Sales Tax Resale Number? Where do I get Sales Tax Resale Number?

Answer 1

It depends on what state you're in. As a generalization the tax ID most people think about for a business is the federal Employer Identification Number (EIN) that you get from IRS by filling out form SS-4.

Usually the Sales Tax Resale Number is issued by your state's tax agency. Here in Texas that agency is the Comptroller of Public Accounts. If you already have a federal EIN the state agency may use it with other numbers added to fit the state's ID numbering program.

If your state also has a state income tax there's a good chance they're also the ones who collect the state's sales tax - check with them to find out how to get a Resale Permit.

Answer 2

This Site Might Help You.

RE:
What is the difference between Tax ID and Sales Tax Resale Number?
What is the difference between Tax ID and Sales Tax Resale Number? Where do I get Sales Tax Resale Number?

Answer 3

Well, those answers are close. They are all correct in the matter of a Federal ID Number.

However, they are wrong in the matter of a Sales Tax Resale Number.

NO...it is not used as a number to identify you/corporation to the state to collect sales tax. Many people think that having a Sales Tax number is the same as a having a Sales Tax Resale Number....but, it isn't. A Resale Number means that your are buying it for resale only and you don't have to pay sales tax...but you will have to collect it when you sell the item.

I hope this helps.

Answer 4

Resale Number

Answer 5

A Tax ID number Identifies you to the Federal Gov. This can be your social security number or a separate number issued to corporations. A tax resale number is kept on file by your wholesale suppliers to use in place of sales tax.No matter what branch of Gov. you are dealing with, they are not interested in what you pay for something, they want to collect tax on what you sell it for.

Answer 6

Sales tax ID is obtained from the state, and is used for reporting sales taxes. The usual use of "tax id" is for reporting employee wages and withholdings - that can be state or federal.