I uploaded my Resale Tax exemption form to not pay sales tax, but I should pay tax on supplies ?

[chuck-thomas]

I'm a reseller.

I've uploaded my state exemption form so I won't have to pay sales tax on Items I will be reselling.

But... I also buy supplies for my business, such as Paper, Printer ink and shipping supplies that I should be taxed on.

How do I handle this ?

Thanks

Chuck Thomas

[goodluckselling]

If you have uploaded the needed documents eBay said they will send you a confirmation email when your tax exemption status has been verified.

Have you gotten this email yet?

Here is a link to the suggested documents eBay wants  click here

Here is a link to more info on this  -  https://www.ebay.com/help/buying/paying-items/paying-tax-ebay-purchases?id=4771#section2

[chuck-thomas]

No just uploaded the document today.

But, that's Not my question.

Besides buying items to resell, that I don't want taxed,  
I also buy items that I will not resell, but will use in my business such as printer ink and paper.

I should pay tax on these items.
How can that be resolved ?

Thanks

[chunkth-70]

I file a form with my state quarterly and remit my use tax for things that are taxable. Likely your state has a similar set up.

[goodluckselling · Accepted solution]

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@chuck-thomas wrote:

No just uploaded the document today.

But, that's Not my question.

Besides buying items to resell, that I don't want taxed,  
I also buy items that I will not resell, but will use in my business such as printer ink and paper.

I should pay tax on these items.
How can that be resolved ?

Thanks

---

For your resale tax exempt account every purchase will have the tax exempt on it, so eBay advice's you to create a new account for general taxable purchases.

Good Luck Selling!

[m60driver]

You can always just wait to be audited.  As my accountant for my brick and mortar retail store use to tell me, always leave some low hanging fruit for the auditors to find rather than they search higher up in more detail.

[csbbct]

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@chunkth-70 wrote:
I file a form with my state quarterly and remit my use tax for things that are taxable. Likely your state has a similar set up.

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This is how it would be handled in my state also - "If you buy taxable goods or services for use in Connecticut and did not pay Connecticut sales tax, you owe and must remit use tax to Connecticut on those purchases."

There is a $25 exemption in my state, however, the rule states - "If all the goods purchased and brought into Connecticut at one time total $25 or less, you do not have to pay Connecticut use tax. The $25 exemption
does not apply to goods shipped or mailed to you."

The rules may be different by state, but should be available on your state's Dept of Revenue website.

[chuck-thomas]

Thanks.... I'll use that idea.

Chuck Thomas

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@goodluckselling wrote:

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@chuck-thomas wrote:

No just uploaded the document today.

But, that's Not my question.

Besides buying items to resell, that I don't want taxed,  
I also buy items that I will not resell, but will use in my business such as printer ink and paper.

I should pay tax on these items.
How can that be resolved ?

Thanks

---

For your resale tax exempt account every purchase will have the tax exempt on it, so eBay advice's you to create a new account for general taxable purchases.

Good Luck Selling!

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[thevintagesilvershop]

On your sales tax report that you file periodically to submit sales taxes, there is also a section for "use tax".  You can use that to pay the state the sales (used) tax you owe on supplies. 

In my previous state, I never paid use tax until I was audited and they made me pay use tax on the supplies I had purchased out of state (bubble wrap, boxes, etc., etc.).