The certificate may be in any form so long as it contains:. For more information, please see Sales for Resale Publication Resale Certificates When purchasing items for resale, registered sellers may avoid the sales tax by giving their supplier adequate documentation in the form of a resale certificate. I mean is Florida technically a Nexus for me? Do I need wholesale license or seller's license from Florida because I'm from that state?
Does your reply to the above questions apply to the Delaware LLC I plan to create as well, or to me personally if I do business as a sole proprietor? My physical address is in Europe for over 20 years.
Any feedback is appreciated even if it doesn't cover all my questions. Thanks in advance Regards James Reply. Richelle Monfort on 10 May Hi James, Because this is a delicate matter I suggest you consult with a professional so you will be given correct advise.
Our training does not give us enough knowledge to answer your questions. Can you tell me what license and approvals I need please? Richelle Monfort on 14 May Hello Barbara, It would be best that you check with your local account to be sure that you are guided accordingly. Neka on 30 May Hi , I am trying to get started with my online boutique. I wanted to know which licenses or permit I would need to start out with.
I also am starting off as a Dropshipping business. I already have applied for my EIN number and have my business name that i want.
What is actually a good place to register my business name? I have already gotten my website starting off with Spotify Reply. Richelle Monfort on 31 May Hello Neka, It's not always required to get started with most suppliers but there are quite a few benefits of obtaining one.
I would like to know if this reseller ID is it just for who live's in US? Thank you Reply. Richelle Monfort on 8 Jun Hi Cid, It's not always required to get started with most suppliers but there are quite a few benefits of obtaining one. Lola on 11 Jun Hi. I am from a foreign conuntry but want to dropship products in the US from US manufactures. Do I need to register a company in the US and get a resellers certificate in order for the manufacturers to agree to work with me?
But you may be asked to provide the equivalent of a sales tax ID from your country. Ashley Y on 11 Jun Hello. I'm located in Pennsylvania and am looking to sell bows on Etsy as a hobby. Do I still need to get a sales tax permit? Richelle Monfort on 12 Jun Hello Ashley, It would be best that you check with your local country clerk or accountant to be sure you're on the right path. I got my Business Number, but I know most wholesale sites would ask for your reseller's permit.
In Ontario that would be the 15 digit with "RT" right? If so, this was the form I was going to fill out. I need these things in order to open wholesale accounts in the US. Eddie on 2 Aug Here is a question I cannot seem to find an answer to. Thank you Ed Reply. Richelle Monfort on 5 Sep Hello Eddie, I think it would be best that you consult with your local account for help so you will be guided accordingly.
However, you don't pay GST on residential rents and financial services. Businesses can recover the GST they pay as an input cost. Grendelyn on 11 Sep Hi if iam not a US citizen and i want to get a resellers certificate because my supplier is from US. Is it possible? Now if your supplier requires you to have one, you can apply for a sales tax ID in your own country. Lucy Maynard on 24 Oct I have a new ecommerce shopify store and i want to dropship to the uk and usa.
The wholesalers all want reseller licences which i dont have and a VAT number but im not vat registered yet? Rhea Bontol on 29 Oct You can sometimes purchase from a supplier without a sales tax ID yet and if you do so, do note that you will be charged with sales tax as if you're the end user itself. Having a sales tax ID allows you to purchase goods in volume at wholesale rates, sales-tax free. Unfortunately, large suppliers would require reseller's of having one for tax audit reasons. So how do I explain this to the wholesalers in the US?
Thanks Reply. If the supplier would insist, you can submit the sales tax ID equivalent in Panama. However, please note you can always inform the supplier on your case to check if there are other requirements you can submit in lieu of the sales tax ID. Some suppliers will allow this while others strictly need the requirements esp for bulk purchases so it's best to discuss these directly with the supplier.
In addition, please note that if your business has a physical presence to where you're selling from, like a brick and mortar store or an office or warehouse, then you must collect the applicable state and local sales tax from your international customers.
If you do not have a presence in a particular state, you are not required to collect sales taxes for international customers. Ami on 28 Nov The best explanation I've come across so far. Rhea Bontol on 30 Nov Glad you found this blog useful! Just remember that different countries may have different tax rules so it's also best to refer to your local trade industry for more info, specially when you plan to do trading internationally.
Do I need a reseller license in this case? Krystal Reply. Rhea Bontol on 29 Jan A reseller's license is issued by your local government that says your required to collect sales tax from your customers in the same state where you operate your business.
This means you are required to collect sales tax from customers in California which you'll then remit come tax season. So even if your suppliers are located in China or just in the US, a reseller's license is needed once you continue to make sales, as this is required from your government.
Ernest frame on 12 Feb Legally, Do I have to have a separate resellers license for different online stores or can I use the same one for all? For example: use one issued for an electronic store to purchase goods for a clothing site. I am the reseller, I shipp beauty and health products from Europe. I would appreciate your help on the topic. Thanks in advance for your answer! Rhea Bontol on 15 Feb Hi Linda! Try contacting the manufacturer with regards to these requirements.
Their hotline number is usually provided at the back portion of their products. Otherwise, if you're purchasing from an authorized supplier, they should still be able to provide you with the same information. I was asked what my certificate of authority number is, but I don't see one on the certificate. In some states, resale certificates are also used to purchase taxable services that become a part of property for resale.
This means that the resale certificate applies to all items purchased from the vendor. States that allow for resale exemptions either accept a state-issued resale certificate or, in some cases, a multi-state certificate. To find the resale certificate for a specific state, you can visit the Department of Revenue website for that state. Still others will allow a statement of resale on the purchase order.
A business which is registered for sales and use tax can use a resale certificate only when the merchandise being purchased is to be resold by the business. A business cannot use a resale certificate to purchase merchandise that they will use and consume in the conduct of business.
Any merchandise obtained upon resale certificate is subject to use tax if it is used or consumed by the purchaser in any manner, and must be reported and the tax paid thereon direct to the appropriate jurisdiction. Most states require certain elements in order for the resale certificate to be valid. If the item is tax exempt under a specific exemption based on its usage and is not for resale, the purchaser should give the seller an exemption certificate.
Question: What documentation is required to exempt sales when the purchaser is an out-of-state dealer who does not have a Florida Annual Resale Certificate for Sales Tax? Please refer to Rule 12A Important Information Privacy Notice - Disclaimer. Page Content. Examples of purchases or rentals that you may make without paying sales and use tax include: Items that become a component part of a product you sell, such as nails, fabric, and wood that are incorporated into a chair, Items resold as tangible personal property, Services that will be resold as part of your regular business operations, or Rentals that will be rented as real property or tangible personal property.
You may not use your Annual Resale Certificate to make tax-exempt purchases or rentals of property or services that will be used: But not resold or rented, Before selling or renting the goods, or By your business or for personal purposes, such as furniture, office equipment, computers, or supplies.
There are criminal and civil penalties for the fraudulent use of a resale certificate. These types of businesses are generally considered to be the end users of products they use in providing service to customers and generally do not qualify for the resale exemption.
Electronics, service vehicles, appliances, office equipment and supplies, books, stationery, computer hardware or software, bandages, mouthwash, toothbrushes, toys, and bedding. Keep a record of all verification response reports to document your tax-exempt sales. Tax Exempt Items Question: Are vendors who sell items that are tax-exempt required to get an Annual Resale Certificate from their purchasers?
Other Question: What documentation is required to exempt sales when the purchaser is an out-of-state dealer who does not have a Florida Annual Resale Certificate for Sales Tax? Disposable food containers, paper napkins, plastic eating utensils, and beverages. Dishes, flatware, kitchen utensils, cleaning supplies, office equipment, office supplies, delivery vehicles, kitchen equipment, credit card machines, and menus. Items for resale to customers for off-premises use, including shampoo, hair tonics, brushes, and cosmetics.
Items used in serving customers on-site, including shampoo, brushes, cosmetics, cleaning supplies, hair dryers, curling irons, beautician chairs, scissors, combs, shears, office supplies, and office equipment.
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