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Sales Tax Exemptions


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Walmart is actually the easiest. You take your cert to customer service, and they'll give you a card. Whenever you check out at any walmart, tell them you are tax exempt first, they'll take the card and punch the number. Then after you pay you need to sign the machine a 2nd time verifying you are TE. Very little fuss and muss. If you have the forms pre-filled out, Kmart/TRU aren't bad, and Target takes a little time but they do it at the register and just need your number. 

 

I try to do my shopping specifically at off peak times to avoid holding up the line, etc etc.

 

Now remember, even if you don't get the tax exemption, in NY (and I assume in most states) you can simply apply to get the sales tax refunded. 

 

Why all stores don't use the same method Walmart does I have no idea. It's far superior, efficient, and makes the most sense.

Edited by Achilles
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Best Buy has the best process, they issue a Plastic card with a barcode, so when checking out the employee can scan barcode at any point during the transaction and becomes tax free. They also have a link during online checkout which opens up a window where you Input the # from your card to make the purchase tax exempt. All retailers should follow their model.

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Did you guys get the tax exemption under a LLC?

 

No. In California you get them by registering with the State Board of Equalization (they are the sales tax authority in this state). They issue you a resale certificate, and you have to periodically file sales tax returns with them for taxes you collect from your in-state buyers.

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  • 3 weeks later...

Just got around to contacting TRU.com regarding sales tax exemptions. They don't set up accounts for exemptions in advance of purchases, like Amazon or Target will, but they do refund after the fact if you fax them your certificate.

 

Disclaimer: I have not yet tried this, so make no guarantees as to whether it's easy, a pain the butt, or, in spite of what CS tells me, impossible. ;)

 

The meat of the response is:

At the present time, our online ordering system does not allow for the exemption of sales tax before the order is placed or during the ordering process.  However, we will be happy to refund the taxes paid on your order following receipt of your exemption certificate. Please fax a copy of your exemption certificate to 1-800-335-4720. Please be sure to note your order number on your fax, and address your fax to "Attention: Tax Exempt Inquiries Department" so that we can apply your credit accordingly. Refunds of sales tax may take up to ten business days, so we ask for your patience in advance.  Once the credit has been issued, you will receive an email notification that you should keep as a reference.

 

Now, my next question: Does anyone have a recommendation for online fax service? We don't have a landline and I don't want to travel to the local copy center and pay them for every sales tax refund I need from TRU!

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  • 2 weeks later...

I just did the same a day or two ago - TRU says up to 10 business days to see the refund, so we shall see!

Justafrog thanks for keeping us in loop. Let us know how it goes. This would be good and will save a lot of resource for us.

On that note, have you tried that in physical stores?

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Justafrog thanks for keeping us in loop. Let us know how it goes. This would be good and will save a lot of resource for us.

On that note, have you tried that in physical stores?

Physical store is pretty straight fwd, just time consuming as they have to input your info every single time.

Btw I use nextivafax.com as a service. Never had an issue with them

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Information on setting up sales tax exemption at Yoyo.com:

 

please email or fax your resale certificate to [email protected] or 1-888-466-1158. Include the email address associated with your account, or the customer number along with the resale certificate.

 

If there is a space to enter the seller/vendor's information, please complete with the following information.

 

 

YOYO.COM

10 Exchange Place

25th Floor

Jersey City, NJ 07302

 

Once this information is received, the tax exempt department will reach out to you for any additional information, or to advise the account is marked as tax exempt.  If the account is marked exempt from tax, all future orders will not include sales tax.

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  • 2 weeks later...

justafrog,

Did you get your TRU refund yet?

I faxed my first batch of 15 orders 8 days ago, haven't heard a peep from them.  Only 173 more orders to go....not counting the mess of orders November will undoubtedly create.

 

Nope, and yesterday was 10 business days, so I sent another message to CS, who told me to resend the fax. Did that just now, waiting another 10 business days until Nov. 12, and then I'll probably get excitable and start calling everyone including the U.S. Marines.

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  • 2 weeks later...
  • 1 month later...

Hey Guys,

     I have been reading over lots of things and spent time googling and much to my disappointment can't find any sort of answer on this question.

 

If I buy something (Lego/anything really) for resale using a Resale Certificate to someone in my State (nexus in which you do business), you charge them the Sales Tax of your area.  Alright cool, got that.

 

If I buy something for use using a Resale Certificate to someone out of my state what happens to the sales tax then?  Do you charge them?  Do you have to report your sale and you owe the Sales Tax back to your state so you work it into the price without calling it sales tax?

 

Any insight is appreciated.

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So straight up I cold go to Walmart buy it 9.75% off (stupid high) and as long as I don't sell to someone in my state I'm good.

That explains to me how people make money selling masses at/near retail then. Not that I have the resources to move that kind of volume but still, might be worth looking into more.

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Yeah I did know the purchaser was supposed to and none of us did until amazon started charging sales tax pretty much.

I'm sure one day we will have a federal mandated tax on all online purcheses, but for now actually starting a small business looks like it has perks.

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Amazon charges sales tax on the states they have nexus in, not use tax. Use tax is paid directly to the state by the purchaser and is not collected by the selling entity.

In regards to your last statement yes that is a nice perk. If you sell in state though you have to collect and remit. Your sales tax rate is one of the highest in the states.

As a bonus bit of info, if you pay more in sales tax than the amount you pay in state income tax, you don't have to pay state income tax. That's just in Georgia I think though. This is mostly for when you purchase a large item though, like a car (or a ton of Lego).

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  • 3 months later...

​You only have to pay for sales that you make in your own state.  For me, that amounts to a small fraction of the sales that I make each year and is well worth the hassle of collecting and remitting sales tax each quarter.

​But you still pay income tax on your profits though right? I never understand why I get charged sales tax from my state but when I ship it to another state I don't have to pay it. Is it better if I charge sales tax from customers in my same state? I only get like...1 customer in every 30 sales orders. Worth the hassle when it comes to tax season next year?

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