A sales tax number is a number or form that resellers, wholesalers, and other direct vendor entities require businesses that wish to purchase for re-sale, re-manufacturing, in the course of business, and other instances and scenarios as such may be required to have a sales tax number before they can do business with the vendor.
Exemptions are granted based on the client’s ability to pay for the purchase, and documentation is required at all times.
Certain purchasers may be eligible for exemptions, depending on the laws of their respective states.
Your company may be required to obtain a sales tax identification number, depending on whether it sells a product or provides a service.
Furthermore, a sales tax identification number is required by several trades in order to purchase, sell, or retain certain large quantities of goods.
Many resellers require a sales tax identification number in order to purchase, resell, and even store and maintain tangible goods.
In most cases, however, you will not be charged sales tax on a transaction that is made solely for the purpose of resale.
Whether you plan to sell your products from your home, in stores, or online, the majority of new businesses will need to register as a business and obtain a sales tax identification number.