Tax ID number usage

Hello I'm a new member of salehoo.

I just signed up for my tax id number on the irs website. I received the number but my question is if I can use that number right away in purchasing wholesale goods that require it?

Hello and welcome tkim8404 :)

I think you should be able to use it unless advised otherwise by the IRS. I highly recommend getting in touch with them and asking them directly if you feel unsure about when and how to use your tax ID number.

Cheers!

Thanks for the help I appreciate the quick response.

You're welcome tkim8404 :) Happy to be of help!

Cheers

Hello likuwai,

It might be a god idea to get an ABN as it should come in handy :) To help you start your business the right way kindly refer to this guide made specifically for Australian sellers -

Link hidden: Login to view

Hope this helps. Cheers!

richellemonfort wrote:Hello and welcome tkim8404 :)

I think you should be able to use it unless advised otherwise by the IRS. I highly recommend getting in touch with them and asking them directly if you feel unsure about when and how to use your tax ID number.

Cheers!

hi, I have a question, do I need a tax id if I live in Israel and buy and sell internationally

Hello lioramantsur,

It would be best that you one or the equivalent of it - In Israel this would be the VAT ID. A number of suppliers will require that you have one although others may not. But to have access to more suppliers it's best to have a VAT ID handy.

Hope this helps!

Hello All - I'm probably responding a little late to this thread. But tkim8404, I'm a little confused on why you would use the IRS website for get a tax ID. Of course don't get me wrong, IRS is the core of Tax but depends on what Tax Id we are seeking.

If it is in the United States and if you are applying for a Tax ID to sell goods (which is transaction tax/Indirect Tax) and not Income Tax/Direct Tax , it is my understanding and experience that that you apply for a Sales & Use Tax number/ID with the respective state comptroller. For example, I started my business in the State of Texas. So I went to the Texas State comptroller website (which provides all the info we need) to apply for a sales and use tax number. The number was allocated almost instantly for my use though the physical license comes through the mail in a couple of weeks I guess.

Not that it is any of my concern, but I'm concerned as to whether you have the right license to sell products. Do remember that you collect Sales Tax if you are selling to anyone within the state / shipping to an address within the State. You would be bound by the law to calculate sales tax (if you are on ebay you could just set this up as a part of your tax table), collect and remit the same to the Govt. The remittance can be done whenever you wish to, but the filing of the sales and use tax return would typically happen on a quarterly basis. Check out the state's requirements for filing returns and the respective due dates.

I recently missed filing my returns on time and I received a notice from the state calculating taxes on my behalf based on some assumptions. The total tax payable was listed close to $1500 or so while in reality my sales was less than $1000 that quarter :)...Yeah..I sucked really bad in sales that quarter :( but you can imagine my reaction when I recd that from the state.

I called them and they said, there was a $50 late fee but that I could correct and file the actual values and it was solved for.

Hope this helps. Please do feel free to let me know if you need any other information. Happy to help!

The TIN/TID is a federal number not related to sales tax. It is used by businesses all over the country, and is often (almost sort of correctly) thought of as a "Social Security number for businesses."

If you incorporate in any state in the US, you will get a federal TIN/TID. Most suppliers who ask for a reseller certificate will also accept a TIN/TID, especially considering that not every state has reseller certs (not every state has sales tax, and the reseller certificates are sales tax-related.)


Frank