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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I buy something from out of state to resell to my customer

Resolved Question:

I buy something from out of state to resell to my customer in my state, but ship to his facility out of my state, he is taxable. My questions is, do I pay sales tax to the company I purchase goods from?
Submitted: 6 years ago.
Category: Tax
Expert:  Merlo replied 6 years ago.

Hello JA Customer,


Sales taxes are only due on sales made at the retail level. If you are purchasing goods which are intended for resale in your business, you are not required to pay sales tax on those goods when you purchase them.


You need to present a sales tax exemption certificate to the vendor which indicates your business name and address, and attests to the fact that the items you are purchasing are for re-sale purposes. The vendor will then keep that certificate on file to justify why he did not charge you sales tax on your purchase.


I am giving you a link below the Sales Tax Exemption Certificate form which you need to complete and give to the vendor who you make these purchases from.


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Thank you




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