Tx Sales tax

[ktarra617]

What is the name of your state? tx

I am starting up a wholesale business. I am aware that under texas law I have to charge sales tax. however I am at a loss as to what I am supposed to do with that money after I collect it. What taxing entity am I supposed to pay sales tax to? What is the process for it?

Thanks!

 

[JETX]

"I am starting up a wholesale business. I am aware that under texas law I have to charge sales tax."
*** Wrong. A wholesale business does NOT charge sales tax. Only retail businesses do. As a wholesaler, you are required to maintain a record of reseller tax exemptions for your customers. If you don't, then you must collect sales tax from them.

"however I am at a loss as to what I am supposed to do with that money after I collect it."
*** If you collect sales taxes, you have to file a sales report with the Texas Comptroller of Public Accounts and send them a check of the taxes you have collected. Depending on volume, this could be monthly, quarterly or anually.

"What taxing entity am I supposed to pay sales tax to? What is the process for it?"
*** Go to the following site:
http://www.window.state.tx.us/taxinfo/sales/new_business.html

 

[ktarra617]

ok let me see if i understand as a wholesaler, I do not charge sales tax if I am selling to a retail business that will charge sales tax, correct?

what about if I sell to individuals, who are obviously not retail, they would just be buying to own it themselves. Then would I need to charge sales tax?

Going back to the first part if I am to keep records for reseller exemptions, are talking you about schools, church's and the like?

I have printed several things off the website that you gave to me to read. thanks so much for your help?

 

[JETX]

"as a wholesaler, I do not charge sales tax if I am selling to a retail business that will charge sales tax, correct?"
*** Yes. But you will need to have EACH retailer complete a certificate and provide THEIR retail number for your records.

"what about if I sell to individuals, who are obviously not retail, they would just be buying to own it themselves. Then would I need to charge sales tax?"
*** Yes.


"Going back to the first part if I am to keep records for reseller exemptions, are talking you about schools, church's and the like?"
*** ANYONE who claims to be exempt from sales tax on YOUR transaction.