Online Tax For Items From Wholeseller.?

Does anyone know If you have to collect taxes if you sell items ONLINE bought from a wholesaler who DID NOT collect tax from you because you were going to sell it… (physically).
If I have to…. what’s the rate? Is it Local or whatever county I’m shipping to?
Any information shared is appreciated.

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4 Responses to “Online Tax For Items From Wholeseller.?”

  1. Jay says:

    Federal law stipulates that the tax is calculated based on the location that the sale was made. Even if it is an internet sale, state sales taxes are due, based on your location. You can google the tax rate for your city/county to determine the amount due for the product purchased. You will also need to open up an account with the state, at which time they will send you a blank voucher, which you fill in, reporting the sale, the tax amount, and your check to the state for the taxes you collected.
    Note: almost 100% of internet sales are protected from state tax, if you sell to your customer outside of your home state. As an example if you live in California and you sell to a customer in California, then sales tax should be collected. This is not true if your customer is located in Texas, as an example.

  2. Chas says:

    Whether you were charged taxes or not is not relevant. Seriously. If you are going to resell you need to get a reseller’s license to avoid paying the sales tax. It has no effect on you having to collect tax.
    You collect sales taxes from shipments to any county in your state. You use the shipping address you send it to, to figure out what rate that is.

  3. tro says:

    if your wholesale vendor did not charge you sales tax, you in turn when you sell it will charge sales tax to the customer
    you would be registered with a resale permit to be able to sell your merchandise and you would have a tax exempt certificate to provide the wholesaler to avoid paying sales tax on it

  4. Judy says:

    No, you would not collect tax from online buyers outside your state.

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