Hi all
I know if we have prep centre in Sales tax free state so we are free of it but if somebody lives in Texas & have bank account on texas details or created LLC in Texas so he also have to ship the stock in Texas to match the shipping & billing address…M I right ? So in this case we have to pay sales tax but can we get back that ?
Or any good accountant, who can help me with all my LLC, banks & Tax related queries
Please give me your valuable answers…Thanks
Texas isn’t a sales tax free state. It’s federal tax free state. Big difference.
I know that income tax free state but not sales tax free state…But I have heard that we can claim back sales tax which we paid…
Because the stock we sell on Amazon, our buyers pay sales tax to us but those tax goes to the government not us, so that why the tax we have while purchasing so we can claim back…
I think its bit like VAT in UK, that you have to pay one side VAT not double side, So I want to confirm that claiming sales tax back thing, is it true? If yes so how ? Through accountant ?
You don’t claim tax back from retailers. First, you don’t inform them that you’ll resell their items, and second, even if you negotiate with retailers and make a deal, it can involve too much hassle.
You can form an LLC in your state as well as in Texas to save on taxes.
Yes I’ll form LLC in Taxes so after that will I be able to?
In UK as we have to pay VAT one time, if we paid on our income so we claim back VAT that we have paid on buying so its not same here ?
If you have an LLC in Texas, you have to pay tax on every item purchased, which is 6.25%. You can save on taxes if you have a reseller certificate and work with wholesalers.
VAT system is completely different from the Sales Tax system. You can’t claim the sales tax back.
Claim systems work in the UK with VAT. In the USA, tax systems allow for exemptions. With wholesalers, you can obtain exemptions by providing them with your seller permit (resale certificate). Additionally, many large retailers like Walmart, Sam’s Club, and Target offer the option to get exemptions on purchases by creating a business account. Last but not least, if you are facing multi-state tax issues, you can obtain exemptions by registering for sales tax in the state where you are making purchases.
If we do last option so will we be able to exempt sales tax on our every purchase either its from small retailer or big ?
Yes, as long as that retailer giving option for business purchase you can get exemption from everyone.
Oh okay, got it…Thank you so much
You’re welcome
Yes, it is possible to recover sales tax paid on purchases for resale through a resale certificate, provided you meet your state’s requirements. Since Texas imposes sales tax, your eligibility for exemption depends on properly using a resale certificate at the time of purchase. Additionally, if you’re unsure about managing LLCs, bank details, or tax obligations, consulting a qualified tax preparer or accountant is essential. They can guide you on compliance, exemptions, and optimizing your tax situation for online arbitrage.