business purchase tax

[BklynJewls]

:huh: Hi, new business ecomerce nyc. If i purchase inventory to resell from a manufature in my state do i pay tax on purchase or does my tax id exempt me. Thanks

[♥GLWalker]

:huh: Hi, new business ecomerce nyc. If i purchase inventory to resell from a manufature in my state do i pay tax on purchase or does my tax id exempt me. Thanks

You really need to check with your local state and federal laws. This is information you need to know, but this is not the place for that information.

In general, with your location, your Tax ID would allow you the tax free purchase, you would only then pay tax on items you Sold within your same State.

[motex]

:huh: Hi, new business ecomerce nyc. If i purchase inventory to resell from a manufature in my state do i pay tax on purchase or does my tax id exempt me. Thanks

 

Hi BklynJewls!

 

If you supplier has your tax id on file you don't pay taxes on purchases from supplier. When you sell to a customer out of state, it becomes the customers responsibility to pay taxes according to their state, and county surtax.

 

Now if you sell to a customer in NYC, then you have to charge tax and are responsible yourself as a merchant to collect and report those sales to irs accordingly. Also be sure you collect not only state tax, but also by county. Double check New York laws. Their is already a contribution here for surtaxes....

 

So say ny is 6% sales tax but manhatten has a surcharge of .5% you actually have to collect 6.5%.

 

So, it sucks you have to research each county for NY. Wiki is pretty good, make sure its up to date. Then find the surtax on each county.

 

The contribution goes by zip codes which cuts down on the work, setting it up shouldnt take more then 3 hours of work if someone hasent already done NY taxes with the contribute. Hope this helps. If you pay tax on from your supplier, your not buying direct!

[MrPhil]

If you're purchasing merchandise or raw materials for resale (i.e., you're buying wholesale), you would not be paying sales tax on that. When you turn around and sell that merchandise to an end consumer, you would have to collect sales tax if they're in the same state (or if your state has reciprocal tax collection agreements with other states -- I believe that NY has one with NJ, but I couldn't tell you when it applies). You definitely have to collect on sales within New York state. To add to your misery, not only does the state have a base tax rate, but each county adds their own amount and some cities add more and organizations like the MTA add a little bit more, AND you have to collect at the rate for the shipping address, not the seller's address (like every other state), AND (AFAIK) it's all done with manual tables! The state tax office does have an online calculator (http://www8.nystax.gov/STLR/stlrHome) where you plug in the address and out pops the general sales tax rate, but I don't think it can be embedded into an online store like osC. That reminds me -- some categories of merchandise have different sales tax rates than others (e.g., inexpensive clothing and footwear have some degree of tax holiday).

 

Have you gone online to http://www.tax.state.ny.us/nyshome/stidx.htm? That's a good place to start for all of this.