This Question is Possibly Answered

1 "correct" answer available (5 pts) 3 "helpful" answers available (4 pts)
Post a new topic
3 Replies Last post: Oct 17, 2009 8:12 PM by bm911tax

drop ship sales tax

Oct 14, 2009 2:26 PM

Click to view cory2184's profile Start-up cory2184 2 posts since
Oct 14, 2009
hello, I own a company in NJ and I have question about the sales tax in drop shipment sales.

Company A is based in Wisconsin. (this is Company B's customer.)
Company B is based in Massachusetts. (this is my customer.)
Company C is based in NJ. (this is me.)
Customer D is based in NJ. (this is Company C's customer.)

D places and order to A. A forwards this order to B and B forwards it
to C. C ships the goods to D and invoices it to B. B invoices to A and
A invoices to D.

Here should I collect sales tax for my shipment that is shipped to D but invoiced to B?

Hope I have been able to ask what I meant.

Thanks.
Report as inappropriate
Click to view bm911tax's profile Mogul bm911tax 64 posts since
Jun 30, 2009
1. Re: drop ship sales tax Oct 15, 2009 10:46 AM

Are these companies wholesale or retail companies?

Do you have a tax advisor?

Click to view cory2184's profile Start-up cory2184 2 posts since
Oct 14, 2009
2. Re: drop ship sales tax Oct 16, 2009 3:22 PM
in response to: bm911tax
D is a retail customer - an individual.
A-B-C are wholesalers.

I do have a tax advisor but I wanted to double-check with someone else as well.
Click to view bm911tax's profile Mogul bm911tax 64 posts since
Jun 30, 2009
3. Re: drop ship sales tax Oct 17, 2009 8:12 PM
in response to: cory2184
Only D collects sales tax from customers.