anabanana's candles Posted March 31, 2008 Share Posted March 31, 2008 I am starting to wholesale some of my Car Freshener Discs to a car care supplier and was wondering how the taxes on that goes. Since they will be reselling do I need to have a resale certificate for them on file. Any Ohio help would be appriciated.Anna Quote Link to comment Share on other sites More sharing options...
OverSoyed Posted March 31, 2008 Share Posted March 31, 2008 http://tax.ohio.gov/channels/other/business.stmI am starting to wholesale some of my Car Freshener Discs to a car care supplier and was wondering how the taxes on that goes. Since they will be reselling do I need to have a resale certificate for them on file. Any Ohio help would be appriciated.Anna Quote Link to comment Share on other sites More sharing options...
momtohaley2004 Posted March 31, 2008 Share Posted March 31, 2008 I am not from Ohio, but I will tell you that here in Tx, I must have a resell form on file. The taxes are the responsibility of the person/company selling the finished product. Example: you sell to the car care place for a discounted price (wholesale) and they resell them for say double what they paid. Taxes are reported on the end sell amount. Since they are collecting the money from the consumer and ultimately buying from you for resell, they are responsible for collecting and reporting all sales tax. But, in order for you to be clear (In TX anyway), you must have the resell form on file that includes their tax permit number. Hope that helps explain things some. I'm pretty sure it's standard or similar throughout but check with your comptroller's office. They are best suited to give you the correct answer for the conditions in your state. Good luck! Quote Link to comment Share on other sites More sharing options...
OverSoyed Posted March 31, 2008 Share Posted March 31, 2008 It can be done both ways to be honest. That would be like saying if you go to the dollar store to buy something, then resell it, the dollar store has to have a cert. on file for you. Quote Link to comment Share on other sites More sharing options...
anabanana's candles Posted March 31, 2008 Author Share Posted March 31, 2008 I have a blanket exepmtion form. Like the one that use at the supply store. I am pretty sure that is what I use. THanks Quote Link to comment Share on other sites More sharing options...
southern.scents Posted April 1, 2008 Share Posted April 1, 2008 It can be done both ways to be honest. That would be like saying if you go to the dollar store to buy something, then resell it, the dollar store has to have a cert. on file for you.Technically, you can't resale those items, or you aren't supposed to anyways. You are only supposed to use them as supplies is what I thought. I know that is the policy here in MS anyways. I can't go to Walmart and buy some things and then resell them. I find awesome candle holders, etc, in some closeout stores around here and I can get tax exempt but I cannot resell them, only use them as "supplies." Quote Link to comment Share on other sites More sharing options...
LynnS Posted April 1, 2008 Share Posted April 1, 2008 I remember a year or more some brought candle warmers when they were on sale at Michaels.We could get them for $3.33 and then resale for about $6.00.I know I sold a few that way.One lady came to me and said WOW your warmers are cheap.A lady not far from you is selling hers for $10.00.I explained they are from Michaels but I resell them with tarts.She said she has one but she had no problems with me selling for that price.She thought $10.00 was a little much though.So this isn't right to do???LynnS Quote Link to comment Share on other sites More sharing options...
anabanana's candles Posted April 1, 2008 Author Share Posted April 1, 2008 I thought that was the whole idea of "tax exepmt" You can't be charged tax on something twice which is why you buy supplies tax free so that you can tax them when you resell them. I wouldn't think that you could go tax free if you are just using them for personal use. That makes no sense. Quote Link to comment Share on other sites More sharing options...
sockmonkey Posted April 1, 2008 Share Posted April 1, 2008 Yes, you will need a copy of their tax exempt certificate for your records; the reason is, if you are audited and show sales but no certificate you will be assessed tax on that sale, and on top of that, they can even fine you for not paying taxes on time. Quote Link to comment Share on other sites More sharing options...
LynnS Posted April 2, 2008 Share Posted April 2, 2008 Sockmonkey,Do you mean tax exempt cert. if wholesaler is in your own state. And do you need to get tax exempt from those out of state??? .I have a lady(out of state) who sells co-workers.Doing fair but will soon be selling at one craft show she does.I need her tax exempt too??? No store front but she is a distributor.I thought at first she would be a sales rep but now know reps get store accounts/wholesalers.LynnS Quote Link to comment Share on other sites More sharing options...
sockmonkey Posted April 2, 2008 Share Posted April 2, 2008 Yes, you have to have a certificate on file for anybody you're wholesaling to within your state. My understanding is that you do not have to collect sales tax on merchandise purchased for resale by customers from out of state (to be sold out of state).Most wholesalers will request a copy of the tax exempt certificate from all companies they are doing business with, whether in-state or not, to verify that they are legitimate businesses and not just a casual customer looking for a price break. Quote Link to comment Share on other sites More sharing options...
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