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    1 Reply Latest reply on Aug 10, 2011 2:36 PM by LUCKIEST

    Sales tax question

    amspcs Ranger

      We drop ship materials to out of state customers, which are billed to us but drop shipped directly to the customers from a wharehouse in yet a third state.  In other words, we are billed, but the items are drop shipped directly to our custoeer.

      Should the vendor be chaging US sales tax?  (we have a valid reseller tax certificate on file with them)

      And if we are charged sales tax by our drop ship vendor, how much and when shoulld we be charging sales tax to our customer.

        • Re: Sales tax question
          LUCKIEST Guide

          Barry, As you know sales tax is a consumption tax, usually paid by the consumer at the point of purchase,

          itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale.


          Most sales taxes are collected from the buyer by the seller, who remits the tax to a state agency.

          Sales taxes are commonly charged on sales of goods, but many sales taxes are also charged on sales of services.


          Ask your accountant or try your local SCORE office.


          Good luck