# Sales Tax



## jimandpj (Mar 11, 2008)

I have a sales tax question. Do you have to pay sales tax on soap you sell in your state to a wholesaler who is going to resell it to the end consumer?

I live in Indiana if the laws are different based on state. I can't find the answer to that questions online. Anybody definitively know?

Thanks!
PJ


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## goat girl (Dec 11, 2007)

In Kansas, No you do not charge sales tax when selling wholesale to a retailer. They, (the wholesaler) charges the sales tax to THEIR customer. I don't know about other states.
Christine


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## SherrieC (Oct 26, 2007)

Tax has to be paid, when your in business you have the tax exempt purchasing because, the end customer pays the tax. Now if you remove a bottle for personal use, or for a sample you or the business is the "end customer" Now what about wholesalers in other states? what do you do with that Vickie?


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## Narrow Chance (Oct 29, 2007)

goat girl said:


> In Kansas, No you do not charge sales tax when selling wholesale to a retailer.
> 
> BUT.. it would behoove you to get thier tax ID number for your records.. or if they do not have one.. thier social security number.
> If my wholesalers do not want to give me that.. then I charge them tax.


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## NubianSoaps.com (Oct 26, 2007)

It's called and employer ID number in Texas. So far I haven't run into any problems with my retail stores, they have tax ID numbers that they give to me, which then I report total sales to each ID number, at the end of the year. I just got my tax ID number for texas to coop scent, and then was notified that it's the same thing as my employer ID number in Texas...so there you go  

There are several really good books like Small business for Dummies. I am going to go to some nite classes for this also, it would be nice to actually be doing this right. And not to guessing and learning on the fly. Vicki


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## jimandpj (Mar 11, 2008)

Thanks for all the information. That's a really good idea to start collecting tax id #'s. I haven't been doing that, but I'll start now.

I agree Vicki - even when I get "official advice", parts of me still doubts it.

PJ


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