Some info about sales tax and selling wholesale

Hey folks,

well I'm ready to reveal the name of that gourmet and specialty food store in the Hudson Valley that now sells my gourmet products but first I wanted to share some information about selling wholesale.

One of the most fun aspects of running my own business has been the incredible amount of learning that I've experienced which has made all the hard work so far just that much more enjoyable. Today was no exception. I got a tutorial on NY sales tax and Resale Certificates from a very nice and patient representative named Jimmy at the NYS Department of Taxation and Finance. I thought I'd share this info with my fellow entrepreneurs out there for those who (like me) just didn't know.

So in NYS, vendors (that's us business owners) are not required to pay sales tax on items used to produce products that will then be resold provided this vendor is registered with the state AND has a Resale Certificate.

Vendors are required to collect sales tax from retail purchasers. There's more...if vendors (remember, that's you) sell wholesale to other retailers (B to B), then that business buyer is also not required to pay sales tax IF they are registered AND have a Resale Certificate. I know it may sound confusing but it's pretty straightforward really. You can find more information online or contact the Department of Taxation and Finance in your state to find out what the regulations are.

In NYS a quarterly sales tax return must be filed using form ST-100. This is the vehicle for paying the sales tax collected. The first one for 2010 is due March 21st and covers the prior one year period ending February 28th.

I'd be happy to talk about specifics if you're interested but I encourage you to reach out to the folks at the Department of Taxation and Finance instead for more information. They're the real experts. Thanks, Jimmy for all your help and for making everything so easy to understand!

So, are you ready to find out the name of that gourmet and specialty food store in the Hudson Valley, NY that now sells my gourmet products?...

Read the next blog to find out :)

Terry