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How to get a Resale License (Sales Tax ID)

How to get a Resale License  (Sales Tax ID)

A reseller's permit (or resale license) is required for US-based sellers in order to avoid paying sales tax on items you are going to resell.To get a reseller's license you first have to enroll with your state tax department, which involves getting a Sales Tax ID number (more on this below). 

What is Sales Tax?

Sales tax is charged on all sales of physical goods to buyers within your state. Some states also charge sales tax for some services.Not all states charge sales tax: if you live in Delaware, Oregon, New Hampshire, Montana, Alaska and Hawaii, then sales tax either does not apply or applies only in certain circumstances.

For all other sellers: sales tax applies to you! Sales tax must be collected by sole proprietors, Schedule C businesses and incorporated businesses alike. In general, you do not need to collect sales tax from buyers who live outside your state.

You can find your state's sales tax rate here. It is important that you do this as there are significant variations between states. For instance, some states have one rate that applies state-wide, while in others, the rate varies between counties and cities.

Note: In some states you also need to collect sales tax on shipping and handling.

How do I get a Sales Tax ID and Reseller License?

You apply for a sales tax ID and reseller certificate/license with your state tax department.

For instance, if you are in New York, then you would go to the New York State Department of Taxation and Finance (either online, by phone or in person) and fill in the appropriate form.

Once you get your sales tax ID, the state will start sending you monthly/quarterly statements.

Business Location

The physical location of your business is what matters to the authorities, not where it is incorporated. So, if you are running your business from New York but have incorporated in Delaware, you will be collecting the New York rate of sales tax from New York buyers.

Buying Wholesale and Reseller Permits

If you are a US citizen purchasing wholesale goods from a wholesaler within the US, then you will probably need a resale certificate or license from the state in which your business is located.

A resale certificate or license enables you to purchase goods wholesale without paying sales tax. It also allows you to collect sales tax from your customers, the end consumer.

Without a resale certificate you will have to pay sales tax on the goods you buy wholesale and then also charge sales tax. In this case you can add the sales tax you paid as a deduction on your return, but it is much less complicated to just present your reseller license when you buy.

Most wholesalers will ask to see a sales tax ID or reseller's license before they will sell you the goods. This is because they are legally obliged to check whether you are able to collect sales tax from the end user.

Use Tax

Another thing you may come across is something called 'use tax'.This tax is in place to discourage people from shopping in states with lower taxes than their own.

Use tax means that if you purchase goods in another state, you owe tax equal to the amount you would normally have paid in your own state. It will also apply to you if you buy goods intended for resale and then end up keeping them for your own use.

Obviously you could potentially get away without paying use tax because it works on an honor basis.However, should you be audited, use tax is something auditors like to hone in on and subsequently many new businesses are caught out. Therefore it is wise to make sure that you pay it and keep the appropriate records.

Collecting Sales Tax on eBay or your Website

It's easy to collect sales tax on eBay. When you are setting up your item description, just select the sales tax option. By selecting the state where you business is located, you can ensure that proper tax is calculated for purchasers who also live in your state.

How to Setup Sales Tax on eBay:

  1. Go to My eBay
  2. Click the Preferences link from the left-hand navigation bar
  3. Click Show in the Payments from Buyers section.
  4. In the Use Sales Tax Table section click Edit.
  5. The Sales Tax Table page appears.
  6. Find the state you want to start charging sales tax in (the state where your business is operating) and put in the correct sales tax amount in the Sales Tax Rate field. You can also opt to charge sales tax on shipping and handling too if required.

For your website, there are plenty of tax software that will help you keep track of tax you need to collect and pay such as Avalara and CCH. If you sell on SaleHoo Stores, setting up your sales tax collection is automated and easy. 

Records to Keep

You need to keep your resale certificates or file as part of your business records. You must be able to match your sales records with resale certificates for audit purposes.

Reporting Sales Tax

How often you need to complete Sales and Use Tax reports will depend on your monthly sales turnover and the state you are working from.

It's very important you are sure to collect the correct amount of sales tax as you will be held liable for any owing.

Note: Trading Assistants do not need to collect or remit sales tax.

50 Comments view all Add your comment
Hi Irene, I am a Canadian Citizen who lived in Markham, Ont, Canada since 1981. Within last few years, we moved back to Hong Kong and opened a webstore in HK seling Out Doors and Scuba Diving items. I am wondering whether I can use my Canadian Citizen status and apply a US Resale License so as to do more trade for those Wholesale or Corporation only deals with the merchants wih RESALE License.. I am still have families ties who lived in Markham, Ont, Canada upto now. Sincerely waiting to hear your advise. Reply
Site Admin
Hi Yvonne, You can just tell the suppliers that you are now residing in HongKong and ask what document they will require in place of the reseller license. Reply
Hello, I am a nail tech that makes home visits... I wanted to retail body jewelry to my clients from a wholesale, I do not own a store or work in a shop so how can I buy and sell. Reply
Site Admin
@emy You will have to purchase wholesale and let the suppliers know how you will be reselling their products. Some will want proof that you will resell, since the prices to be given to you is for wholesale. :) For more info, please refer to our Education Resource http://www.salehoo.com/education/finding-sourcing/how-to-order-from-a-wholesale-supplier Reply
Hi Irene, I still find this re seller and seller permit a little hard to understand, if I my company is online only (eBay or Amazon, does the same principles apply to it? And, how can I whole sellers to buy the products to resale from? Reply
Site Admin
@Miguel The reseller license applies to all resellers required by law to collect sales taxes, so whether the sale takes place online or in a store, they must collect sales tax on taxable items sold at state taxable locations. So that means the resale license is applicable to all US based resellers, whether they sell using an online store or using a physical store. And for more info on how to source products from wholesale suppliers, please visit our Education Resource at http://www.salehoo.com/education/finding-sourcing/how-to-order-from-a-wholesale-supplier Hope this helps. :) Reply
Hi good day! I want to set up a website where I'm selling clothes online only can you pleaseeeee tell me the first thing I should do legally so I dnt run into any trouble with the law! I will not be purchasing wholesale I buy retail and stuff on sale! Please help really needed! Can I go ahead and set up website while I apply for license if there is any I should apply for? Thanks a lot!!! Reply
Site Admin
Hi Dash! Please refer to http://www.salehoo.com/education/business-setup/how-to-start-an-ecommerce-business Cheers! Reply
Hi, I am a Canadian and will be using a wholesaler in the US to buy product which will then be shipped from the wholesaler to an Amazon fulfillment warehouse in some undesignated state. As a Canadian do I need a reseller license to work with the wholesaler? Reply
Site Admin
@Dan You will need to confirm directly with your chosen supplier as they will need details on the location of your store. :) Reply
Hello Irene I'm setting up an online store and I will be selling goods online which I will purchase wholesale from China and India I want to cover all my basis I have an EIN # and I'm working to incorporate my business and the next step after that is to trademark my company and set up an LLC I'm trying to take steps to make sure I'm not breaking any laws. Do I need a re-sell lincese and does this mean that I should be paying "use tax" on the products I'm purchasing overseas? Thank you Reply
Site Admin
Hello @Sassie, You need a resellers o r sales tax ID in the following scenarios: * If you live in the USA or Canada. Most states have a sales tax, but there are a couple that don’t. If you reside in one of these states just let the wholesaler know and they may have a different form or requirement for you to complete. * If you sell online to make money (i.e. You sell more seriously than just getting rid of a few old things from around the house every now and then). You need a seller’s permit so you can charge and collect taxes, which you’ll pay to your state government later. * If you want to purchase goods wholesale from a US supplier (and you are also based in the US), you need a seller’s permit to buy wholesale sales tax free. Although it’s not necessary for SaleHoo members to have a seller’s permit and a registered business for them to use many of the suppliers in our directory, we strongly recommend you get one as it will give you access to even MORE wholesalers. As for Use tax, I read that this tax is levied for out of state or online purchases. It is assessed upon tangible personal property purchased by a resident of the assessing state for use, storage, or consumption in that state (not for resale), regardless of where the purchase took place. As we are not tax experts, I suggest visit your county clerk's office and have this explained to you. All the best! Reply
Hello Irene, I have been looking into selling leather purses and I wanted to know what do I really need to obtain to do my business in a legal manner? Do I have to have a resale license and/or resellers permit? Which one do I need or do I need both? How much do they cost? Thanks a million! Reply
Site Admin
Hi @LaShawn, Thanks for your email. The piece of paper that goes by many aliases! The sales tax Id is also called a Retail or Reseller's License, State Sales Tax Id, Tax Id, Resale Number, Resale Certificate, or Vendor's License. All of these names are referring to one thing: A certificate issued for a small fee by your state (if you live in Canada or the US) that says you are registered to collect sales tax. You can usually get one from your State’s website – just Google ‘Your State + sales tax’. For example, this is where New Yorkers can apply for their Certificate of Authority to Collect Sales Tax http://www.nys-opal.com/ A seller's permit is required for retailers who buy or sell tangible, taxable items. It is required to buy wholesale and sell retail or sell wholesale. WHEN DO YOU NEED A SELLER’S PERMIT (SALES TAX ID)? * If you live in the USA or Canada. Most states have a sales tax, but there are a couple that don’t. If you reside in one of these states just let the wholesaler know and they may have a different form or requirement for you to complete. * If you sell online to make money (i.e. You sell more seriously than just getting rid of a few old things from around the house every now and then). You need a seller’s permit so you can charge and collect taxes, which you’ll pay to your state government later. * If you want to purchase goods wholesale from a US supplier (and you are also based in the US), you need a seller’s permit to buy wholesale sales tax free. Although it’s not necessary for SaleHoo members to have a seller’s permit and a registered business for them to use many of the suppliers in our directory, we strongly recommend you get one as it will give you access to even MORE wholesalers. WHAT DO YOU NEED TO GET A SELLER’S PERMIT (SALES TAX ID)? Exactly what you need to get a sales tax ID varies by State. You may need: * To be a business entity. This means you are a company or sole proprietor. Being a sole proprietor means you are working for yourself under your own name. If you are working for yourself (which is how most people get started selling online, just fill in your own name under your business trading name). Being a company means that you have registered a company under a trading name. Find out more here: http://www.business.gov/register/steps-to-register.html * To have a Federal Tax ID number. Find out more here: http://usgovinfo.about.com/od/moneymatters/a/taxidhowtoget.htm WHERE DO I GET MY SELLERS’ PERMIT (SALES TAX ID)? You can try Googling it – Most states have an online form on their website these days. Most states also charge a small fee. This varies from state to state, but it's usually around $50. If you can’t find any information online on how to get a seller permit, then just contact or visit your local County Clerk Office. WHAT IF YOU LIVE OUTSIDE THE US AND THE SUPPLIER ASKS FOR A SALES TAX ID? Usually you just need to provide something equivalent in your country, for example your VAT registration in the EU or the UK, or your ABN or GST registration in Australia and New Zealand. Occasionally you may run into suppliers who want to see a business license before they will sell to you. These suppliers will generally have large minimum orders and wish to determine that you are serious about purchasing their goods. Getting a business license is fairly straight forward. You need to contact your local court house or country clerk's office and they will direct you to the person you need to speak with. Some states will charge a fee for a business license application. Please note that the majority of the suppliers on SaleHoo will NOT require a business license before they sell to you. Hope that helps! Please let me know if you need anything else at all. Reply
I am planning to start my own online business, but have no idea where to begin. I am planning to buy wholesale, so I will need a business license and a Sales Tax ID. Do I need anything else? And when I file my taxes what do I need to hand over to the IRS? Do I keep track of my cost for the product, my cost for shipping it, and my resell price? And do I only charge taxes for people in my state? Thank you :-) Reply
Site Admin
Hello Sarling, The best place for you to get your questions answered is at your County Clerk's office as requirement s may vary from State to State. You need to keep your resale certificates or file as part of your business records. You must be able to match your sales records with resale certificates for audit purposes. You only charge sales taxes t o customers within your state. Hope this helps! Reply
Site Admin
Hello Sarling, The best place for you to get your questions answered is at your County Clerk's office as requirement s may vary from State to State. You need to keep your resale certificates or file as part of your business records. You must be able to match your sales records with resale certificates for audit purposes. You only charge sales taxes t o customers within your state. Hope this helps! Reply
i live in mexico and i want to buy direct from the stores like macys, sears, target, do i need the reseller id? i mean am goin to sale all here in mexico, and theres a directory o wep page where i can see what the store have in sale, overstock or returns, i allready buy from a big company in miami, but i want to be the firts hand, anybody can help me? or explain to me better,thxs. Reply
Site Admin
@George Macys, Sears and Targets are retail stores. Tax Ids are required by wholesale suppliers. Since you are in Mexico, just confirm with the suppliers what documents they will be requiring from you. :) Reply
Thanks For sharing this information Reply
Irene, I basically would like to purchase fashion items, jewelry, and other random items to resell online and directly in person to consumers. What exactly to I need. Friend advised that I need an S-corp with a business license along with a resell certificate. I'm based in NYC and I plan to purchase within the USA as well as internationally. Do I really need all that I mentioned??? Reply
Site Admin
@Sharon @Veronica Each of the suppliers' terms and conditions vary, so you just need to contact them directly to confirm what they will be requiring from you. A business license will help to assure them that you are seriously into the business and will not waste their time. A resellers license is required as the suppliers are mandated to ensure that you will be collecting taxes from your buyers. If you are in a state that does not collect sales tax, the supplier are also aware of these states. Ultimately, you can get all the information on what they will be requiring once you contact them directly. Cheers! Reply
Full Member
If I'm going to just sell on Amazon (live in California) What will I need in forms or License/ Permits
Thanks
Clyde hall
lthpublishing@gmail.com
Reply
Full Member
Hi Folks,

I am looking for some clarification. There is a supplier I would like to purchase from but they stated that I need a re-seller certificate for the state of California in order to drop ship. I contact the California State Board of Equalization and they informed me that because I do not have a physical address in California and I live in Canada. I do not require a re-seller's certificate. However the supplier is stating that I do and I can not do drop shipping without the certificate. My question is what should I do?

Thanks, Reply
Site Admin
Hi Terran Dale,

It seems that you have failed to mention to the supplier that you live in Canada and is not physically present in California. They will give you a different instruction if you clarify these.

Let us know how you get on. :) Reply
I am looking to sell various handmade crafts including clothing, accessiories , and home goods. This started out a hobby but I am constantly asked where people can get these items or if I sell them. I want to start out selling to friends and family and also setting up shop at craft bazaars or markets just to see how that goes. I have also thought about using etsy. I would be doing this part time as I have a full time job. I have also considered donating portions of my proceeds to various charities as I am doing this because I love it not because I need the money. What type of reseller and other documentation do I need? And do I need a business license since I do not have a shop I am selling out of? Any advice is appreciated. Reply
Site Admin
Hello Shannon,

Although you mentioned that this is more of a part-time thing and that most of the proceeds are for donation, you have to keep in mind that a seller's permit is required for retailers who buy or sell tangible, taxable items. It is required to buy wholesale and sell retail or sell wholesale.

You may also consider looking at registering your business if this becomes more of a permanent thing for you (selling online). Getting a business license is fairly straight forward. You need to contact your local court house or country clerk's office and they will direct you to the person you need to speak with. Some states will charge a fee for a business license application.

Although it's not necessary for SaleHoo members to have a seller's permit and a registered business for them to use many of the suppliers in our directory, we strongly recommend you get one as it will give you access to even MORE wholesalers.

Hope this helps!


Reply
Helloo Irene,

I want sell Computers, laptops online. I have an LLC registered in Delaware, and also have a EIN number. I am from india and i donot live in USA, however, i have a partner from USA. Can i sell through my E-commerce website? Do i need a re seller licence, Is there anything else i need? Which state do i apply the licence, and can i sell throughout USA.
Thanks a Lot in Advance. Please Help. Reply
Site Admin
Hello Abhisharma,

A seller's permit is required for retailers who buy or sell tangible, taxable items. It is required to buy wholesale and sell retail or sell wholesale.

WHEN DO YOU NEED A SELLER'S PERMIT (SALES TAX ID)?

* If you live in the USA or Canada. Most states have a sales tax, but there are a couple that don't. If you reside in one of these states just let the wholesaler know and they may have a different form or requirement for you to complete.
* If you sell online to make money (i.e. You sell more seriously than just getting rid of a few old things from around the house every now and then). You need a seller's permit so you can charge and collect taxes, which you'll pay to your state government later.
* If you want to purchase goods wholesale from a US supplier (and you are also based in the US), you need a seller's permit to buy wholesale sales tax free.

Since you live outside the US you just need to provide something equivalent in your country, for example your VAT registration in the EU or the UK, or your ABN or GST registration in Australia and New Zealand.

Hope this helps!
Reply
Hi Irene,

I want to sell products from Kenya on a website here in the US. The women who make the producucts live in the slums and I want to help them make money. I will not be making a profit from the items I sell. I was planning on sending all profits I make back to the women in Kenya. Is this allowed? How do I go about doing taxes? Reply
Site Admin
Hello Heather,

Your plan sounds fantastic and shows you have a good heart. Sorry but I'm not sure how you will go about this. But you may need to register your site as something in the likes of a non-profit organization. You can try by visiting your local County Clerk Office or checking your your state's website for details.

Good luck!

Reply
I have a dog training business in fla. and would like to purchase training equip. wholesale and resell to clients for profit.What type of resale cert. do I need and can I purchase thru this site. I am set up as a D B A. Reply
Site Admin
Hello Randy,

Not all our suppliers will require one but having a sales tax ID will mean you have access to more suppliers! You can usually get one from your State's website - just Google 'Your State + sales tax'. For example, this is where New Yorkers can apply for their Certificate of Authority to Collect Sales Tax http://www.nys-opal.com/

Just to clarify SaleHoo is not a supplier rather we are an online directory for suppliers. Cheers! Reply
hi i want to start my own online business in the US and sell products in the US so is this what i would have to have a seller's permit and if i buy products i would have to get a resellers license and a sales tax.id is that right? Reply
Site Admin
Hello Darrell,

If you are based in the US, yes you will need a reseller's license in order to avoid paying sales tax on items you are going to resell.To get a reseller's license you first have to enroll with your state tax department and get your sales tax ID.
Hope this helps. Reply
tryn 2 figure out which license I need. Reply
Site Admin
Hello Tumika,

You need a sales tax ID which is also called a Retail or Reseller's License, State Sales Tax Id, Tax Id, Resale Number, Resale Certificate, or Vendor's License.

All of these names are referring to one thing: A certificate issued for a small fee by your state (if you live in Canada or the US) that says you are registered to collect sales tax. You can usually get one from your State's website - just Google 'Your State + sales tax'.

For example, this is where New Yorkers can apply for their Certificate of Authority to Collect Sales Tax http://www.nys-opal.com/ A seller's permit is required for retailers who buy or sell tangible, taxable items. It is required to buy wholesale and sell retail or sell wholesale.

Cheers! Reply
Starting an interior design business. Have an EIN, but need reseller certificate in state of Illinois. Who do i put down on the form for "Identify the Seller" (me?) and "Identify the Purchaser" (me?) I plan on reselling furniture to my clients that I purchase directly from the manufacturers.
Thank you!
Reply
Site Admin
Hello Andy,

I think you would be the seller in your application, but I'm not too sure on who you should indicate as the purchaser since it could mean (1)purchaser, the one who will buy from you or (2)purchaser, the person in-charge of buying stock for your business. I suggest getting in touch with your state's revenue department as they will be more qualified to address your questions. Alternately you can also try searching for the answer thru this page - https://idor.custhelp.com/app/home

Sorry I was not of much help here. All the best! Reply
Hello ... I live in Mexico and i want to resale bags and jewelry to the final costumer here... I want to buy from wholesalers in USA but can i do that? Because i saw i need a Sales Tax ID ... Can you help me? Thanks !! Reply
Site Admin
Hello Hanna,

You can secure the equivalent in your country, Mexico, which is the VAT. A VAT ID should suffice the need to provide a sales tax ID because you are based outside the US.

Hope this helps! Reply
hi... i live in australia and i want to purchase dresses and other items from bali,indonesia and philippines. My question is how to get license to buy stuff from overseas to sale in
australia? Reply
Site Admin
Hello Nancy,

As per the Australian Customs and Border Protection Service, http://www.customs.gov.au/site/page4368.asp#4

"There is no requirement for companies or individuals to hold an import licence. However, depending on the nature of the commodity, and regardless of value, owners may need to obtain permits to facilitate clearance of goods. Some, not all, of the goods require permits"

So best if you check with them to be sure. Hope this helps :) Reply
Hello,
I'm an Israeli Citizen who's planning to resell baby gear products on ebay after purchasing them from USA suppliers.
As a non US resident- how do I get a seller permit/ resale certificate, given the fact that it's issued by the state I live in- which, in my case, none of them. What alternatives do I have?

Thank you in advance! Reply
Hi, I do not own my own retail business, but I am a vendor who rents a space in a consignment shop. Most of the items I sell are things I pick up from tag sales, flea markets etc. BUT, I would like to buy a few new products from a whole sale distributor to resell at my booth and make a profit. I do not collect any sales tax myself, the consignment shop owner takes care of that. Do I need a reseller license to buy whole sale products even though I personally will not be collecting sales tax on the items that are bought by the consumer? Reply
Hi! I'm looking into starting my own company selling candles and body butters. I'm just wondering how do I get started? What do I need to be legal? Thanks for any and all help! Reply
Site Admin
Hi Adele,

The reseller license will be required by US based suppliers from US based resellers, so that they can pass on the goods to them at wholesale pricing with assurance that these resellers will collect sales tax from buyers as mandated by law. I don't see this applicable to you, seeing you have already sourced your items and that you are not based in the USA.

Hi Suzanne,

I suggest you clarify this with the supplier that you plan to source products from, as they are in the best position to advice what to require from you. :)

Cheers!
Reply
Hello, Irene

First, thank you for your response!
Second, it's important to mention that I'm intended to resell the goods to US citizens only.
In addition, my intention is not only purchasing the products from the US suppliers at wholesale pricing but also tax free- and for that purpose I'll propably need a resale lisence to guarantee that I won't resell their goods for my own personal use- Won't I ?
So, my question is- what alternatives, as a non US resident , do I have for resale lisence?

Waiting for your reply, thank you in advance,

Adele Reply
First of all, I'm starting an online business. I can't buy any of my products without a resellers permit or tax id. I live in NY now however, in September I will move to Florida. SO what do I do first. I'm overwhelmed, with all of this information. Reply
Site Admin
@Adele Yes, wholesale pricing is for resale, and not for your personal consumption, hence the supplier will want to see your reseller license. :) If you are not a US resident but is in USA to resell, then you will need to comply with the state rules on tax collection, and will need to secure that license based on which state you are in. If you are not a US resident, not based in the USA, then you will just tell that to the supplier and they will state what alternative document they will require from you. Sorry I cannot state what document that will be. :)
@Tiffany I suggest that you talk to the supplier directly, as it will really depend on their policy. :) Reply
Site Admin
@Kimberley Here's the page for you http://www.salehoo.com/education/business-setup :)
Cheers!
Reply
My friend just opened a consignment shop. Do I need to obtain some type of license if I want become a vendor within her shop? Hope I am asking this correct! Reply
Site Admin
Hello Donna,

It may depend on your friend's business policy. If her business requires their resellers to have a resellers license then yes you will need to get one. Best you ask your friend so you can comply as required.

All the best! Reply
Hi guys I have a couple question so I am in the beginning of opening an online business for clothing. Where do I go for the DBA ?? And I live in TX but I will move to FL in June my business is not running yet. I did order my merchandise but it probably be april-may before everything will start. I was wondering can I get a tax ID, reseller license in FL if i still reside in TX?? Do I need a FL address first? Besides DBA and tax ID is there anything else i legally need ??? When i looked up Tax id the webside said tax id would cost me $130.00? I thought Tax ID # reseller license and DBA is free??? Is Tax id and reseller license the same thing??? Thank you so much in advance. Reply
Site Admin
Hello Jasmin,

It's difficult to say for sure. I suggest getting in touch with Florida Department of Revenue - http://dor.myflorida.com/dor/taxes/gta_contact.html as they will be able to provide you with the right answer to your questions.

All the best!

Reply
SEEKING info please.
Hi, I opened up an LLC in Florida and I offer artwork services. I purchase canvases and design them upon custom request. I have an EIN number but as I wanted to shop wholesale I was asked for my resale license. Is the EIN number the same as a resale certificate #? Thank you kindly for your info. Reply
Site Admin
Hello Linda,

The EIN number is generally issued by the Feds (IRS) and the sales tax ID number is issued by your state department of revenue.

EIN number you acquired from the IRS. This is essentially a "social security number" for a business. When you file your taxes, you will use this EIN number as your business' ID number.

The sales tax ID also know as a resale ID/reseller ID is issued by your corresponding state's department of revenue service. When paying sales tax collected (either monthly, quarterly or annually depending on volume), you do so via a separate form than you would when filing your state and federal income taxes.

So in short they are not one and the same :) Hope this helps!
Reply
Hi Irene
I plan on having a online shoe/accessories boutique but before I get my website I want to just sell the wholesale items to family and friends. So do I still need to obtain a Tax ID or Resellers ID? Reply
Site Admin
Hello Caylah,

If its more like leisure selling and not something to intend to gain a stable income from then you should be fine even with no sales tax ID.

You may want to check with your local country clerk as to what is the ceiling amount that will make you require a sales tax ID.

All the best!
Reply
It is so great to find all this information! I have been googling forever! I have a specific question. I am a US citizen who has been working in India for the last couple years. I am now moving to Canada for grad school. I have encountered some really unique products in India and want to set up an online shop to sell them. I don't think I can start a business in Canada because I'm not a Canadian citizen. Do I need to set up an official business in order to get the reseller permit? If yes, is it possible to set up the business in the US, even though all operations, shipping, etc. will be from Canada? Thanks so much for your help! Reply
Site Admin
Hello Kiki,

Sorry but your situation may be too complicated for what my knowledge. I thin k it would be best that you check with Canada's Trade Information Line at (613) 944-4000. Their fax number is (613) 996-9709. The Canadian government provides more information at this web site - http://www.international.gc.ca/trade-agreements-accords-commerciaux/index.aspx?lang=eng

You also have the North American Free Trade Agreement (NAFTA) to consider. This agreement helps facilitates the cross border movement of business persons who are citizens of member countries.

Hope this helps you move forward towards the right direction :) Reply
Hi,
I have a customer that has locations across the United States. Their headquarters and my company are in California. We use 3rd party vendors to perform services for their locations outside of California. We have one agreement that is billed to their headquarters where we charge them applicable California sales taxes. Should vendors in other states charge me sales taxes when they service to my customer outside of California? And if they do, should they accept my California Seller's Permit to remove those sales taxes? Reply
Site Admin
Hello Chris,

This is what I gathered to help address your question:

"Online sellers are usually required to collect tax on sales made to customers in their own state. This applies if you have an Etsy shop, sell on Ebay, have your own website or sell on another online venue. If you live in Minnesota, you must collect taxes from online sales to customers who also live in Minnesota. As of now, you aren’t required to collect sales tax from buyers who live in a different state than you for online sales. "

I think you might find the other basic info from this link http://outright.com/blog/the-simple-but-sweet-guide-to-charging-sales-tax/ helpful :)

Hope this helps! Reply
Hi! I am interesting opening a business overseas opening a vitamin store plus jewerlies and cosmetics. I don't know what to do to get all documents required and which licences i need? thank you Reply
Site Admin
Hello Djene,

The licenses and documentation you need will depend directly on your current location. So can try checking with your local county clerk or with a certified accountant.

Sorry could not be of much help without knowing your location. Cheers! Reply
Free Member
Morning!

My sister has an S Company, has had it for many years, and would like to get a re-sellers license, does she need to get a Tax ID or can she get it without it?

Reply
I'm a little confused...

I have a Canadian corporation and a US EIN number.

I have an E-Commerce business but I'm trying to expand and I found a manufacturer I'd like to work with.

They require a resale certificate. Whereas my other manufacturers only required my EIN number.

I also do not live in Canada. I live abroad for most parts of the year, if that impacts anything.

I don't really know where to go from here. Reply
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