[Subscribe to Daily Digest] |
[Main General Bulletin Board | BBFAQ |
Prev by Date | Next by Date | Post Followup ]
Member Login / Signup - Members see fewer ads. - Latest Member Gallery Photos
Tax clarification Posted by Ari [Email] (#2847) [Profile/Gallery] (more from Ari) on Thu, 23 Feb 2006 09:22:53 In Reply to: Tax # doesn't equal wholesale, Ari [Profile/Gallery] , Thu, 23 Feb 2006 05:56:32 Members do not see ads below this line. - Help Keep This Site Online - Signup |
The points are that a tax number doesn't mean you pay wholesale.
All a tax number allows you to do (in Connecticut, anyway) is:
1 Collect sales tax if you sell something.
2 Avoid paying sales tax on something that you will be reselling (and charging tax for - see #1).
I make jewelry on the side. When I sell a piece of jewelry, I have to charge sales tax, and I send that tax to the state.
If I were to buy something for resale, like a wholesaler's jewelry, I would use my tax number. When I sell the piece, I send the tax to the state. This way a piece isn't taxed twice.
If I buy a piece of equipment for my business, I pay sales tax - it's not for resale.
If I buy something wholesale and I use my tax number to not pay sales tax, and I keep that thing, I have broken the law, and will be hit with taxes and fines.
Again, a wholesale account doesn't have anything to do with a tax number. I have set up wholesale accounts without using my tax number.
posted by 192.249....
No Site Registration is Required to Post - Site Membership is optional (Member Features List), but helps to keep the site online
for all Saabers. If the site helps you, please consider helping the site by becoming a member.