First time working with an authorized distributor questions about sales tax

Hi I have some questions about sales tax I think I’m understanding things. Here goes. First I had to get a reseller tax exemption certificate in the state of Ohio to get unlocked with my distributor. I’m being told for dropshipping orders I will be charged taxes in any state I don’t have a certificate. Why is this I thought my distributor should only be liable for collecting sales tax in locations where they have a nexus? How are they liable for taxes in states outside their nexus? Maybe their nexus is bigger than just the 4warehouses I can ship from? Or is there something I’m missing here? Second it is my understanding that their nexus extends to me for dropshipping. If they have a warehouse in California and I fulfill to a customer in California I owe California sales taxes on the sale, is that correct? Third, for the states that accept the multi jurisdiction form, can I just use my seller ID from my Ohio permit for those states? Do I need to send the multi form to the respective states and get an individual certificate for each state by doing that, or can I just put my Ohio seller ID down for the states that accept them and give that to my supplier? I’m a little confused on who I give the multi jurisdictional form to, my supplier or the state?Fourth if I collect sales tax in a state where I have no nexus and my distributor has no nexus do I have to remit that to the state anyway or can I just keep that money? Fifth if I fulfill an order to an area where neither I or my distributor have a nexus but I do not have a reseller exemption in that state should I just collect the sales tax from my customer and give it to my distributor or would I still be on the hook for remitting the taxes I collected? Last question does the warehouse the product comes from matter? For example if I send a package from a warehouse in Ohio to California, do I owe taxes on that since my distributor has a warehouse in California? Thank you.

submitted by /u/moonbeamer2234
[link] [comments]

Leave a Reply

Your email address will not be published. Required fields are marked *