If you plan on do business
with REAL wholesalers, you might need to supply a "Sales Tax
ID number"..................
This
is called different things in different states in the US, but the reason
you need it is simple. REAL wholesalers are not
going to charge you any tax on the products they ship to your
customer. At the end of the year, they have to show the IRS why they did
NOT charge you that tax.
Your
"Sales Tax ID number" proves that YOU are collecting sales tax on your
customers' purchases. The general rule is that
you only collect sales tax on the products shipped to addresses in the
state where your business resides, but you should check to be
sure how this is done in your own state.
The
wholesaler keeps a copy of your "Sales Tax ID number" on file, so that
they are not liable for the tax on the products shipped to your customers.
Every
state has a web site listing information about the tax rules in that
state, and where you can obtain your "Sales Tax ID number". You can click
on your home state below to go to that site, and get the information you
need.
I get a lot of "tax related questions" about selling on eBay so I created
a special area that I will keep all the "eBay tax stuff" in.
Online Sales Tax FAQ's
Tax Software
Tax
Forms
Free Tax Resources
Or
for more information check your State site below.
