Hi Amazon Sellers
I would like to know if US sellers can claim back the sales tax they paid to retailers when they purchased stock for their OA business. I’m sure in wholesale, since we will provide resale certificates to wholesalers and get sales tax exemptions, but I’m not sure about OA, since we buy from retailers…
As far as I know, using a prep center in a state that does not have sales tax means I will be free from sales tax, but I would like to form a company in Texas for two reasons:
First, because my cousin is there to help me with my bank accounts and serve as my registered agent, and second, Texas does not charge income tax…
Thank you for taking the time to respond…I’m looking forward to your valuable responses
You don’t claim tax back from retailers, one you don’t tell that you’ll resale their items and second even if you talk to retailers and make deal then you can but in that case this contains too much hassle.
You can form llc in your state as well as in Texas to save from tax.
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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 llc in texas you have to pay tax on every item purchased i.e. 6.25%. You can save yourself from tax when you have reseller certificate and you work with Wholesalers.
VAT system is completely different from the Sales Tax system. You can’t claim the sales tax back.
Okay got it…Thank you so much
Claim systems works in Uk with VAT. In USA tax systems you can get exemptions. With wholesalers you can get exemptions after giving them your seller permit (resale certificate) plus if you want to get exemption from retailers this can also done many big retailers like Walmart, sams, targ have option to get exemption on purchasing by creating business account. Last but not least if you are facing multi state tax issues you can get exemptions by getting sales tax in your desire state where you ware purchasing.
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 ?
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Yes, as long as that retailer giving option for business purchase you can get exemption from everyone.