Originally Posted by kumar1803
#1;Do I need to collect Tax when my customer buy product on my site but reside outside of Texas.
#2;If so Do I need to apply for re-seller certificate for all remaining States also.
#3;Can you help me applying for Tax certificate if the answer is yes to above.
#1; Some are the responsibility of the seller as sales tax, others the buyer's responsibility as use tax. But governments figured out that it was easier and more reliable to make the seller collect the tax than to get individual consumers to send in tax on every purchase. So, businesses are typically responsible for collecting sales tax and sending it to the state; all merchants should collect sales tax, regardless if they sell through a traditional brick-and-mortar store or exclusively online.
Note; Currently, online retailers are required to collect sales tax from customers in their own state. In addition, Nexus, which is defined as having a significant physical presence in a state, determines whether an online retailer is also required to collect sales tax from out-of-state customers. For example, online retailers must collect sales tax from out-of-state customers if the retailer has a physical presence within that customer’s state, which includes a temporary or permanent presence of property or people working in that state .please contact your state dept of revenue for more accurate info.
#2; Resale certificates are used by purchasers, when acquiring property for resale in its present form or as components of other property. They are also used to purchase taxable services that become a part of property for resale in some states. States that allow for resale exemptions either accept a state issued resale certificate or, in some cases, a multi-state certificate. A business which is registered for sales and use tax can use a resale certificate only when the merchandise being purchased is to be resold by the business. A business cannot use a resale certificate to purchase merchandise that they will use and consume in the conduct of business. Any merchandise obtained upon resale certificate is subject to sales and use tax if it is used or consumed by the purchaser in any manner, and must be reported and the tax paid thereon direct to the appropriate jurisdiction. basically I guess yes; for example, retailers based outside CA are required to pay CA sales or use tax on sales of merchandise to CA customers if they are “engaged in business” in the state and must register to pay sales and/or use tax.
#3;The best way is to contact the state BOA or dept of revenue for accurate answers. then they'd let you know how to apply for