AdriaticBlue

Questions about being in the position of selling to retailers:

• If I do that, would I be considered a wholesaler?

• If I am considered a wholesaler, should I be purchasing my products at wholesale prices from distributors or should I position myself as a distributor?

• If I am a wholesaler, do a refrain from charging taxes to my retail customers?

I thought to ask this after seeing the thread:

Sales Tax - How to Charge/Figure

Thanks...

AB

 

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Rodney

I think you would be a wholesaler.

Quote: If I am a wholesaler, do a refrain from charging taxes to my retail customers?

Yes. Sales tax is intended to be charged only to the "end" user. The final customer that wears the shirt.

That's why the major blank t-shirt wholesalers ask for a tax id or sellers permit number so they don't have to charge you tax on your orders (and so they can confirm you are also a wholesaler.

You then would sell to the retail store at wholesale prices without tax, making sure that you get the proper seller's permit information from the store for your records. The store then charges tax on the final sale to the customer that will wear the shirt.

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AdriaticBlue

Quote: Originally Posted by Rodney I think you would be a wholesaler. Yes. Sales tax is intended to be charged only to the "end" user. The final customer that wears the shirt. That's why the major blank t-shirt wholesalers ask for a tax id or sellers permit number so they don't have to charge you tax on your orders (and so they can confirm you are also a wholesaler. You then would sell to the retail store at wholesale prices without tax, making sure that you get the proper seller's permit information from the store for your records. The store then charges tax on the final sale to the customer that will wear the shirt.

Awesome, that's what I needed to know!!!

Thanks a bunch...

AB

 

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