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I've been calling some wholesalers and they keep asking me to send them a copy of my "resale certificate". I understand that this certificate says that my wholesaler won't charge me sales tax and then I have to pass the sales tax on to my customers.
My ecommerce site will be selling to other US states and to international countries. I won't be doing business in the state that I reside in; so my question is do I still have to collect sales tax? I thought the only state that I would have to collect sales tax is in the state that I operate in, right?
If this is the case then why do I need a "resale certificate" to setup an account with a wholesaler if I'm not doing business in my state as of now?
joined:Dec 10, 2005
It's simply not profitable enough for many wholesalers to deal with the public.
The "resale certificate" only applies to states that I have operations in, and these are the customers that I have to pass on the sales tax to since the wholesaler didn't charge me sales tax, right?
Thank you, again.
joined:Oct 25, 2005
They don't care who you sell to.