Essential Resale Certification for Alibaba and other Sourcing Platforms
Help!
We have recently been notified by our manufacturing platforms (such as Alibaba), that we are required to provide a resale sales tax exemption form of some sort, to prove we are purchasing product on Alibaba to resell on Amazon (where sales tax is then collected on Amazon when product sold to end customer).
While we were approved for state sales tax exemption via a couple states, these have since expired. We have recently inactivated all of our sales tax accounts since Amazon handles sales tax for just about every state with Amazon being a "Marketplace Tax Facilitator".
If we sell product exclusively on Amazon and do not require state sales tax accounts since Amazon handles sales tax being a Marketplace Tax Facilitator, what specific documents can we request obtain from Amazon to prove we are reselling product as a seller (and not using product bought on Alibaba and other platforms for personal use)? This is needed to avoid heavy sales taxes on inventory purchased using these platforms such as Alibaba/AliExpress.
Best, SPD
Essential Resale Certification for Alibaba and other Sourcing Platforms
Help!
We have recently been notified by our manufacturing platforms (such as Alibaba), that we are required to provide a resale sales tax exemption form of some sort, to prove we are purchasing product on Alibaba to resell on Amazon (where sales tax is then collected on Amazon when product sold to end customer).
While we were approved for state sales tax exemption via a couple states, these have since expired. We have recently inactivated all of our sales tax accounts since Amazon handles sales tax for just about every state with Amazon being a "Marketplace Tax Facilitator".
If we sell product exclusively on Amazon and do not require state sales tax accounts since Amazon handles sales tax being a Marketplace Tax Facilitator, what specific documents can we request obtain from Amazon to prove we are reselling product as a seller (and not using product bought on Alibaba and other platforms for personal use)? This is needed to avoid heavy sales taxes on inventory purchased using these platforms such as Alibaba/AliExpress.
Best, SPD
16 replies
Seller_Hi7wbO2Kbo6bl
If you are conducting a business within the U.S. you should have a resale license on file with your state, whether or not you are collecting/remitting sales tax. You will probably have to file a report in any case.
There is no need to have resale licenses in other states.
Wholesale businesses expect you to have this.
Seller_hZ409bHSOTHe1
the mention if alibaba is making me and a lot of other Amazon sellers cringe because of all the other problems arising from using them as a supplier.
Seller_52pUzzgnsLDGs
How are you getting away with that? You still have to be licensed in your state. I have to file in my state every month no matter what. If I only have sales through companies who collect and file for me I just file zero but I still have to file. And so do you.
So, when Amazon sends in their tax dollars to your home state in your name, eventually your state department of revenue will realize they have nothing to match those monies to and you are not filing every month and they are going to come after you. I suggest you don't wait until that happens, reinstate your business license, and get your monthly or (quarterly if that's how your state does it) filings in from all the way back to when you stopped.
Seller_Hi7wbO2Kbo6bl
That's not how that works.
$X in sales, X% remitted in tax.
That's pretty much it.
