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Do I have to charge sales tax?

by Vortex015
4 replies
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Hi everyone,

I am setting up a few ecommerce stores and a supplier said I needed to have a sales tax certificate number in order to order some of the product I'm going to be selling. Do I have to charge sales tax? I have an LLC set up, but I do not have a retail store, all my sales will be online only. Any help would be appreciated.
#charge #sales #tax
  • Profile picture of the author Kingfish85
    Originally Posted by Vortex015 View Post

    Hi everyone,

    I am setting up a few ecommerce stores and a supplier said I needed to have a sales tax certificate number in order to order some of the product I'm going to be selling. Do I have to charge sales tax? I have an LLC set up, but I do not have a retail store, all my sales will be online only. Any help would be appreciated.
    You need to consult with a local accountant.
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  • Profile picture of the author OnlineStoreHelp
    Originally Posted by Vortex015 View Post

    Hi everyone,

    I am setting up a few ecommerce stores and a supplier said I needed to have a sales tax certificate number in order to order some of the product I'm going to be selling. Do I have to charge sales tax? I have an LLC set up, but I do not have a retail store, all my sales will be online only. Any help would be appreciated.
    Any true wholesaler will ask to see some type of resale certificate. Each state has different names. Here in Hawaii it's a General Excise Tax Certificate, other states it is a resale certificate. Essentially they want to make sure you are a legitimate reseller of product, and that you are registered with your state of Domicile. It is how they can then sell to you without charging sales and excise tax. tl/dr it's how they know you are a true reseller.

    Even if you sell online you will still have to remit taxes owed in any place you have nexus. So as long as you live in a state that charges Sales Tax, you will need to remit sales tax for any sales in that state. Nexus (in its simplest form) means anywhere you have a physical presence. Live in California with a warehouse in Tennessee? Technically you should be remitting sales taxes for any sales to California and Tennessee respectively.

    Look up your states department of revenue or department of taxation, etc and it will tell you how to register for it.
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  • Profile picture of the author timpears
    You do not have to charge sales taxes, no matter what anyone tells you. It is not required.

    However, it is required you pay sales tax (or what ever they call it where you domicile). And if you don't remit the tax, you can and will be in big trouble. Assuming your state charges sales tax.

    If a wholesaler does not ask you for your certificate, I would be wary of that merchant.
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    Tim Pears

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  • Profile picture of the author Auctiondebteliminator
    ^^^ This guy.

    It's true.

    In fact, in some cases, I put this as part of my pitch in my adcopy.

    I tell them that I pay for their sales tax, and I DON'T charge them anything. Same thing with shipping when I do free shipping.

    They pay a flat-rate. Nothing is added to the price of the product-- ever.

    Remember. People are only willing to pay what they deem the item is worth, and if you start tacking on fee after fee, then they start getting pissed.

    You do NOT NEED TO CHARGE SALES TAX! You ONLY need to PAY it. You don't need an accountant to know this.
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