Q&A for How to Get a Resale Number

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  • Question
    I want to shop at Restaurant Depot, but a resale number is required. Is there any way to purchase not for resale?
    Community Answer
    Yes - tell them you want to pay the tax on the items.
  • Question
    I want to start selling online, only through Amazon, eBay, Etsy, etc., are the requirements different?
    Community Answer
    You still need to collect sales tax, especially in the state where you reside. On Etsy, if you are just starting out, you can use your SSN, and if you have more than 200 transactions or $20,000 in sales, you need to submit your earnings/losses to the IRS. Consult an accountant that deals with online retail.
  • Question
    I buy products and make jewelry from them to sell to the public. I pay sales tax on my sales. Does this permit allow me to purchase products at wholesale prices?
    Community Answer
    If you are referring to a sales tax resale number, this allows you to buy certain supplies from vendors that you intend to resell without paying the sales tax up front. When you sell the item the sales tax is then collected. Wholesale prices are prices negotiated with your vendor based on quantity purchases. Provide them with your resale number, and they will remove your tax from the invoice.
  • Question
    We want to buy food products from the U.S. and ship to another country. Do I need the resale licence?
    Community Answer
    You need to check with USDA about the requirements for selling/shipping food items to another country. You will probably need to be certified through USDA or FDA, depending on what you are shipping.
  • Question
    If I have a resale certificate for my company in the state of Florida, but sell equipment for resale out of state, do I need to register with each state I ship equipment into?
    Community Answer
    No. You are a Florida company with Florida being your principal place of business. By and large, federal diversity jurisdiction and state long arm statutes can handle what licenses essentially do, which is to allocate liability.
  • Question
    What if I get a resale number but don't sell the goods? Just keep them because of the discount. Will I still have to pay taxes on them?
    Community Answer
    Yes, as most states will charge a fine and may require you to pay interest on the amount.
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