Reason to display sales tax permit at business place

 
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Posted On : 29th Aug 2009

 

What are the consequences and compliance of consciously posting sales tax certificate at business location?

Department of revenue imposes penalty if sales tax certificate does not post at business premises. It is displayed at cart, truck, wagon, stand and vehicle if there is no fix place to start business. It is one of the compliance which is fulfilled for the department of revenue.

A separate sales tax certificate is hanged on each location. Generally, sales tax certificate contains business address, business name, validity of sales tax certificate and the sales and use tax number.

A heavy penalty imposes if sold taxable goods without a sales tax permit. Such as in the state of New York up to $10,000.00 penalty impose.

A duplicate sales tax permit or sales tax authority is obtained by the division of taxation or department of revenue of the state where the business is operated, if the it was lost or misplaced. Most states do not charge any fee to issue a duplicate copy of sales and use tax license.

What happens of the existing sales tax permit if the ownership change?

A sales tax certificate does not transfer to a new owner if the business was sold or transferred to a new owner including to a family member and a new sales tax registration application is filed

What happens with the defaulter of sales tax?

A defaulter of sales tax is personally liable to pay the prior due sales taxes and in the general, division of taxation does not forgive due sales taxes.

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Bonnie

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Are sales tax certificates/numbers required to be displayed on websites? How do I find the number for a specific website?

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Reply from: infotaxsquare.com | 2015-12-12



Are sales tax certificates/numbers required to be displayed on websites?

It has to be displayed at your location, not on your site and you have to contact to the department of revenue to get details about finding number of the specific vendor.

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tracy parker

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I live n SC....my question is I am purchasing in Tenn.....does it matter what state I apply for? if I apply online how long does it take to get?

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Reply from: infotaxsquare.com | 2015-06-16

Tracy:

Thanks for choosing InfoTaxSquae.com for your business needs. Yes, the state matters and would be appreciated if you either call us at 516.822.3100 to discuss the matter in person or write more details about your question to guide you accordingly.

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Philip Kwok

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Hi! I come from Hong Kong. Our company was established in Hong Kong. Now, I would like to buy the wholesale price products in USA. The wholesaler request us to provide valid copy of our resellers permit, federal EIN, or sales tax certificate. How can I get these certificate in USA.

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Reply from: infotaxsquare.com | 2013-08-19



Open A Branch of Hong Kong Office In The USA


In order to get a seller's permit, EIN, or sales tax certificate in the USA to buy wholesale products from wholesalers, a company will be registered in the USA.

Requirement to open a company in the USA for a Hong Kong Company?


  • Choose the state where you are willing to perform business.
  • Select entity type such as a corporation or limited liability company. Sole proprietorship is not allowed for a non US resident. It registers with the secretary of state as a foreign entity.
  • Get an Employer Identification Number for your entity from the Internal Revenue Service. Clearly mention in the Form SS4 that it is applying for a company which has a principal office in Honk Kong.
  • Get Sales Tax Number from the department of revenue under your foreign entity of the Hong King company in order to buy goods from wholesalers.


A letter of good standing is acquired from the Hong Kong Government that reveals the company status in King Kong whether it is legally registered and actively working in Hong Kong. It is provided to the secretary of state along with the company formation documents.

Maintenance of a Branch office?

  • Monthly, Quarterly or a Yearly sales tax return will be filed based on the gross sales of holding funds in a "Sales Tax Trust Fund". The department of revenue will advise the due dates to file sales tax returns in the state where the company was established.
  • Annual report, biennial report, periodic report or a franchise report is a field which varies the  state requirement. Franchise report fees is calculated based on the yearly gross revenues whereas the others have a fixed fee to pay on or before the due date.
  • Yearly business and income taxes are filed based on the net income.