Frequently Asked Questions
Q: Who must obtain a seller's permit?
A: If you are in business in any particular state,
you need to get a seller's permit for that state. So long as
you have a location, representatives, agents or canvassers in any
particular state, and you sell tangible products you need a seller's
permit for that state. Tangible products are products that
ANYONE can touch, such as furniture or any other concrete substance.
The requirement applies to any business whatever the form. So, for
example, if you are a sole proprietor, a partnership or a
corporation / LLC, you need to get a seller's permit.
Note that if all the conditions above apply and you also just do
temporary sales in that state you still need a temporary license for
that state.
Click
to Find Out if You Need the Permit(s).
Q: What Does it Qualify as Doing Business or Engaged in a Business Activity in This State?
A: Generally , if you have a sales office or room, warehouse, or
other place of business in the state including temporary offices or
agents in this state. Your sales representative, agent, or
canvasser operating and selling in this state whether selling,
renting, leasing or any other activity that concerns the sale of
tangible items, the lease or trade of taxable items requires a
seller's permit.
Q: What items are tangible and subject to
sales tax?
A: In general, retail or wholesale sales of touchable personal
property are subject to sales tax. Touchable property is property
such as furniture, giftware, toys, antiques, clothing, and so forth.
In addition, even if you manufacture tangible items even for you own
specific clientele, so long as it is tangible, it is taxable. Thus,
for instance, Atahualpa hires you to create some jewelry, and he
gives you the materials or you provide your own, the total price of
your item including the labor is taxable.
On the other hand, certain costs for repairs may not be taxable. For example, Atahualpa comes back to repair his jewelry and you do. You don't have to charge any taxes because no touchable products are created.
In the same line of thought, if Atahualpa buys a tent and he
wants you to install it in his palace in Peru, you don't have to
charge taxes because you installed something. You did not create or
sold a tangible item.