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Sales Tax Certificate
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Sales Tax Certificate

by Shaos on Mon Aug 22, 2011 3:13 am

From which point kitbiz should apply for subj?
Based on what I read - immediately after entity creation and before even 1st sale
Any real experience?
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Re: Sales Tax Certificate

by adafruit_support_bill on Mon Aug 22, 2011 6:12 am

You will want it as soon as possible because vendors will want your tax number so they don't have to charge you sales tax on parts for resale.

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Re: Sales Tax Certificate

by Shaos on Mon Aug 22, 2011 10:04 am

adafruit_support wrote:You will want it as soon as possible because vendors will want your tax number so they don't have to charge you sales tax on parts for resale.


Tax number is EID right? It looks like it's not required to get "Sales Tax Certificate" if I'm "sole proprietor", no?
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Re: Sales Tax Certificate

by adafruit_support_bill on Mon Aug 22, 2011 10:20 am

Don't know the requirements in your state. But the answer is probably just a google away.
http://www.skipmcgrath.com/articles/salestax.shtml

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Re: Sales Tax Certificate

by Shaos on Mon Aug 22, 2011 9:06 pm

My state is NY. I understand now that you are talking about "Sales Tax ID":
http://www.ehow.com/how_6232129_file-st ... umber.html
Here it says that "North American Industry Classification System (NAICS) Code" is required
So question is what number is for PCB sales?
http://www.census.gov/cgi-bin/sssd/naic ... ode=423690
423690 - Printed circuit boards merchant wholesalers ?
or may be
http://www.census.gov/cgi-bin/sssd/naic ... ode=454111
454111 Electronic Shopping - This U.S. Industry comprises establishments engaged in retailing all types of merchandise using the Internet.
http://www.census.gov/cgi-bin/sssd/naic ... ode=454113
454113 Mail-Order Houses - This U.S. industry comprises establishments primarily engaged in retailing all types of merchandise using mail catalogs or television to generate clients and display merchandise. Included in this industry are establishments primarily engaged in retailing from catalog banned of mail-order houses as well as establishments providing a combination of Internet and mail-order sales.
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Re: Sales Tax Certificate

by lyndon on Mon Aug 22, 2011 9:55 pm

FWIW, the last time I had a Sales Tax number I was living in CT and I just listed the business as "computer consulting" or similar. The state doesn't really care as long as they get the tax owed from in-state sales, but the city or county may want to tax your property. If you list as anything that sounds like manufacturing, they're going to be expecting heavy machinery worth $$$ in tax revenue.

Along those lines, if you aren't making in-state sales, you don't really need the Sales/Use tax certificate. Most businesses will not collect sales tax from you if you simply say you're buying the items for resale. It's up to you to be sure that really is the case.

I should also note that I put off getting my tax certificate until I had actually booked an in-state sale. In the few years I had that little business, I had exactly two in-state sales, but every! single! year! after that I had to fill out a city tax form to say that I had no taxable business property assets (I think the cutoff was < $1,000) in my little apartment.

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Re: Sales Tax Certificate

by Shaos on Mon Aug 22, 2011 11:54 pm

lyndon wrote:Most businesses will not collect sales tax from you if you simply say you're buying the items for resale.


As I read it's illegal without proper "Resale Certificate" with that number from "Sales Tax Certificate of Authority" issued by New York state...
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Re: Sales Tax Certificate

by adafruit on Tue Aug 23, 2011 12:12 am

lyndon wrote:Most businesses will not collect sales tax from you if you simply say you're buying the items for resale.


when someone wants to be a tax free account for adafruit we require the sale tax cert. we need to provide ours all the time when we buy things as well.

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Re: Sales Tax Certificate

by lyndon on Tue Aug 23, 2011 10:37 am

It's possible that either the law is being more rigidly enforced these days (it's been over 10 years since I had the business I mentioned) or enforcement varies state by state.

e.g., around here if I buy stuff from a farm supply store, they won't collect sales tax if you say the items are for farm use. You fill out a card with your identification and it's left up to you to report/pay the tax as necessary.

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