If we use our tax exempt number to buy wholesale goods to sell at our business, will we eventually have to pay taxes on our purchase at the end of the quarter, or are we exempt from taxes on that purchase completely? How does it work?
Thanks!
2007-10-09 01:55:00 · 2 answers · asked by Sugarcookie 5 in Business & Finance ➔ Taxes ➔ United States
There could be some minor difference from one state to another but generally you do not pay sales tax on the items you by for resale. If you use some of those items for personal use you are required to report that use and pay the sales tax that you were exempted from. When you resell the items to customers you collect sales tax from them. Depending on the rules in your state you would report and remit that sales tax collected from the customer to the state on a periodic bases (normally quarterly).
2007-10-09 05:37:23 · answer #1 · answered by ? 6 · 0⤊ 0⤋
You will collect sales taxes from you customers as you sell the inventory. This tax is then remitted to the state monthly, quarterly or annually depending on what your filing frequency is.
2007-10-09 02:06:10 · answer #2 · answered by Wayne Z 7 · 3⤊ 0⤋