h0mgrts: What are the tax situations when the wholesaler must prove who exactly the retailer is that bought their goods?
What are the situations when the wholesaler must to prove to the taxing authority who exactly the retailer is that bought their goods?
>Q1:Why wholesale companies asking EIN?
>A1(tkahrs12122): When goods are sold sales tax must be charged. >The retailer is the responsible party. The wholesaler needs that number to prove to the taxing authority who exactly the retailer is that bought their goods.
Answers and Views:
Answer by bostonianinmo
If you make a tax-free sale to a retailer in your own state or any state where you have a nexus, you must have a copy of the retailer’s sales tax certificate on file. You don’t need their EIN, but their sales tax certificate. And the purchase from you has to be for resale in order to be non-taxable to you.
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