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Getting Your Sales Tax ID / Resale Tax ID Number
REAL Wholesale Suppliers demand “Sales Tax ID numbers” from all customers.
A sales tax ID (also called a resale tax ID number in some states), but the reason you need it is the same everywhere. REAL Wholesale Suppliers are not going to charge you any sales tax on the products they ship to your customer. At the end of the year, they have to show their state taxing authority why they did NOT charge you sales tax.
The wholesaler’s “proof” of this is to keep a copy of your “Sales Tax ID number” on file, so that they are not liable for the tax on the products shipped to your customers.
Your “Sales Tax ID number” proves that YOU are collecting sales tax on your customers’ purchases. In general, you only collect sales tax on the products shipped to addresses in the state where your business resides, but you should check to be sure how this is done in your own state.
Every state has a web site listing information about the tax rules in that state, and where you can obtain your “Sales Tax ID number”. Click on your home state below to go to that site, and get the information you need.
Note: Some states, such as Montana and New Hampshire, have no general sales tax. In that case, I have nonetheless linked to that state’s website verifying that the state collects no sales tax.
Furthermore, Montana, for example, explains how to obtain a sales tax exemption number for when dealing with wholesalers. So even if you know your state has no sales tax, it’s worth checking out the links below.