Sales tax and reseller permit services

PO BOX 1381 Bellmawr, NJ 08099

CS@BENTenterprise.com

+1-916-467-8632

Getting a sales tax id or the reseller permit

The tax that is levied at the time of end-purchase of any service or any product is referred to as the sales tax. The tax is applicable for all the retail sales, rentals and leases and even on certain services which are deemed as taxable. The tax is generally not applied if the product is purchased for a resale or it is purchased to use for further processing of another product. The tax is normally a percentage that gets added to the cost of the service or the goods which are being bought.

The responsibilities of a business owner, whether you are opening a start up or buying an established business, will vary based on the kind of entity that you own. The estimation of this tax is done at county or municipal levels as well in addition to the state level estimate. The payment will depend on your business’ sales and also the regulations of the state you do the business in.

It is normally the end user of the service or the product who is levied with the sales tax that is the consumers of the product or service. There is exemption for the resellers from sales tax if they do not use the product and are not the end consumers of the product or service.

There are some states which do not levy sales tax. They are,

Delaware
Oregon
Alaska
New Hampshire
Montana

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What does Sales Tax id refer to?

The Sales tax id is a number issued by the state in the form of a legal document and is also referred to as the Sales Tax exemption certificate. This is a certificate that gives you the authority to make the required sales and use the tax, issue the documents for tax exemption like certificate of resale when buying inventory, etc.

There are many names and forms in which you can find the Sales Tax id number.

Sales Tax permit
Certificate of authority
Reseller permit
Reseller certificate
Reseller tax id
Sales tax exemption certificate
Sales tax vendor id number
State tax id number
Sales tax registration.

Which businesses should get a Sales Tax id?

You can get a Sales tax permit from the tax department of your state, if you want to register your business as a vendor for sales tax. There will be penalties that one has to pay, if their business, prior to issuance of sales tax id number, was making sales that were taxable.

Why to get yourself a Sales tax permit?

Any business that offers or sells a service or a product which is taxable has to collect the sales tax. In order for you to collect the sales tax from your consumers, you need to have the Sales tax id number, which gives you the authority to do so. It is not necessary that you make a sale or open your business in order to have a sales tax id number. When you have the sales tax permit, you are irrevocably considered to be in business. Whether you have a taxable sales for the period or not, you need to therefore make sure that you file your sales tax returns on time with the concerned department so that you are not penalized for delayed or non-filing.

Change in the structure of the organization

Whenever you are changing your business entity, say from partnership or sole proprietorship to LLC or C-Corporation, you have to register again as a new entity and a new sales vendor with the state. You will also need to get yourself a new Sales tax permit before starting to sell under the new structure or entity of your organization. For the old business, you have to file one final return and you also have to surrender the permit for the earlier organization to the state.

Show your Sales tax permit prominently

In any place you do business, you are required to showcase the permit you have for Sales tax explicitly. In case, there is no physical location and you only have carts and wagons, then you can display them on the side of the vehicles or any kind of facility from which the business is done. This is a mandatory requirement for any sales tax vendor.

What kind of goods and service are taxable?

Any corporeal and personal property that is transferred between two parties for a certain value is taxable. In fact in the states of US, almost every ware, merchandise and goods come under the taxable section and also any property which is bought for rent or lease. Any service that is associated with these corporeal properties will be considered taxable. The only services that are exempted from this are repairing, reconditioning or installation of the devices, provided they are mentioned separately in the invoice. Most of the purchases related to food, where it is unprepared or uncooked are exempted from taxation.

Substantial personal property

Any sale of corporeal or substantial personal property will include the below, but is not limited to this list.

Any fixtures for lighting, any appliance and furniture.
Supplies, tools, parts of machinery or the equipment itself on the whole.
Off the shelf software for computers (pre written) and the computers.
Motor vehicles.
Yachts and boats.
All fuels including diesel motor, motor, kero-jet, etc.
Confectionaries and candies
Beer, soda and bottle water.
All tobacco products and cigarettes
Toiletries and cosmetics
All form of jewelry
Any art including photographs, paintings and sketches
Seeds, plants, animals, shrubs and trees.
Monetary items including coins when they are bought not to use as an exchange medium but for other purposes.
Materials used in construction.
Calling cards for prepaid telephone.

Sale of services like,

Information services where a certain information is provided on request
Printing, imprinting, fabricating, assembling, processing any substantial taxable property.
If the personal property was not purchased for resale, then any services performed on the personal property.
Repair, service, maintenance, installation of substantial property which are not meant for resale by the consumer of the goods.
Storage of tangible property which is not for sale.
Rental of storage facilities including vaults and safe deposit boxes.
Repair or maintenance or service of buildings or other real property both in and out.
Storage, garages, and parking services provided for vehicles.
Interior Design and interior décor
Detective or protective services.
Information or entertainment provided through telegraph or telephone.

Apart from the above mentioned, the below list of items are also taxable. The list is not all inclusive.

Sale of Electricity, steam, refrigeration and gas.
Services related to electricity, steam, refrigeration and gas.
Sale of Telegraphy and telephony
Services related to telegraph and telephones like answering services, cellular services and other transmission services.
Sale of Food for consumption by restaurants and taverns to be consumed on their premises.
Sale of Drinks and food items from caterers.
Sale of Sandwiches and other heated food.
Rental paid for motel or hotel rooms which include guest houses, boarding places and B&B (Bed and Breakfast).
Fee of admission into performances of musical or other arts, amusement parks, sporting events, live performances, circus, movie theatres, etc.
Initiation and other dues generally paid for social clubs or athletic clubs and the dues are more than $10 a year.
Charges levied by Roof garden, cabaret and other places
Fixture of lighting, furniture and appliances.
Supplies, tools, parts of machinery or the equipment itself on the whole.
Off the shelf software for computers (pre written) and the computers.
Motor vehicles.
Yachts and boats.
All fuels including diesel motor, motor, kero-jet, etc.
Confectionaries and candies
Beer, soda and bottle water.
All tobacco products and cigarettes
Toiletries and cosmetics
All form of jewelry
Any art including photographs, paintings and sketches

Want to get your Sales tax permit?

If you are looking for a professional to fill in and file your application for getting the Sales tax id number, then you can get in touch with us anytime. You can reach us through phone or speak to our representatives on live chat.

We will help you file your documents in compliance with the state and federal regulations and ensure that the filing is done with accuracy and diligence.

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