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Sales tax for business to business sales

by 5hownewsday, Window Shopper

  • Created: January 25, 2011, 5:43 pm
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2 comments

Hello:

Do business to business sales of merchandise have to pay sales tax or is that only when the sale is final to the consumer?

Tags: Discuss Popular Topics, Filing and Paying Taxes
‹ Internet Business Tax Questions How do I even start to think about taxes? ›

AbilityBooks | Performer | 1/26/2011 - 9:35 am

Usually if a business is a reseller, they can purchase goods for sale free of sales tax and then charge the sales tax to the consumer. Check with your states dept of revenue for specific rules.
Reesa McKenzie Small Biz Accountant
Professional Web Site: http://AbilityBooks.com

BizResearcher | Window Shopper | 1/26/2011 - 12:02 pm

Show Replied Text…
Usually if a business is a reseller, they can purchase goods for sale free of sales tax and then charge the sales tax to the consumer. Check with your states dept of revenue for specific rules.
In order for a business to purchase without being charged sales tax, they have to have a resale number from your state tax agency. They provide the number to you when making a purchase, then they charge sales tax to the retail purchaser and they remit the sales tax to the state.