SC2565

When selling wholesale to retailers in/out of your state do you have to charge tax??

 

Reply With Quote

tashazo

no.
if you are a wholesaler, then that means you are selling to people/businesses who are reselling your product, either as is or embellished in some way. those are the ones (who sell retail), who collect and pay tax. you may need to get info from them (that they are registered business, a resale form, their tax id, etc) to prove that they are indeed reselling (and not individuals trying to get a cheaper price)...
I'm no expert, so pls research further to make sure you are doing the right thing.
good luck!

 

Reply With Quote

ravgoel

We are in CA

Out of State: We don''t have to charge sales tax if we are selling out of state.

In-State: But when we sell in state - we have to get a re-sale permit form filled out - so that we don't have to charge tax. This form is a proof that we sell for re-sale purpose. if the in-state buyer does not have a re-sale permit # then we are supposed to charge tax. You can still not charge sales tax - but then it means you will be paying the tax out of your own pocket.

I know in CA - we are also responsible to make sure that the re-sale permit is valid. You can do that by going to the board of equlization website or call a # on their website.

__________________
Raveesh (R & T Apparel)
www.divinelookapparel.com

 

Reply With Quote