Do you need to get a Sales Tax certificate in Idaho State?
You may need a Sales Tax Certificate if any of the following apply your business:
- You rent or lease property (other than real property) to an end user within the state of Idaho
- You maintain a stock of goods in Idaho
- You have a distribution location such as a storage area or warehouse space
- You have employees physically present in Idaho (including independent contractors, Sales persons, representatives, or agents in or out of state)
- Your business services tangible personal property within the state
Your business has taxable services in the state of Idaho
What constitutes taxable services in Idaho State?
The majority of service businesses are not taxable in Idaho. The exceptions would be service businesses that manufacture tangible parts or products. Additionally, transportation services are taxable.
Why do I need a Sales Tax Certificate to purchase wholesale items for Resale in the State of Idaho?
As a wholesale company conducting business in the state of Idaho, you are required to have a sales tax certificate when purchasing items at wholesale prices, Therefore, suppliers must request a copy of your resale certificate before selling you items at wholesale prices.
Do you have to collect Sales Taxes for shipping charges?
If you list shipping charges separately on an invoice then you do not have to collect sales tax, but if you lump them in with the price of the merchandise sold then you would have to.
Is there sales tax on drop shipments in the state of Idaho?
A drop shipment is where a seller (most times out of state) sells a product which is then delivered to a consumer by a third party shipper. In most instances, drop shipments in Idaho are required to have sales tax added
Are there any exemptions to taxable items sold?
Certain prescription medicines, specific medical devices, raw materials, and custom downloadable software are tax exempt