Do we still need a Sales Tax License since marketplaces are now collecting and filing sales tax
We only sell over internet platforms that collect and file sales taxes in each state. We don’t have a brick & motar store. We don’t collect sales taxes ourselves anymore since online platforms are now required to handle that aspect.
We used to have TaxJar file our Sales Taxes for us; but we noticed after the law changed they would only file “zero” amount Sales Tax Reports, and we paid for each filing. It didn’t make sense and we discontinued that service. Now were are getting late fees charged ($50/month) for those months that no “zero” amount Sales Tax Reports were filed. So no we had to start filing “zero” amount Sales Tax Reports.
I am wondering - since we no longer collect Sales Taxes - do we still need a Sales Tax License in our state?
I would appreciate knowing how you handle this. Thanks. Sibylle
Do we still need a Sales Tax License since marketplaces are now collecting and filing sales tax
We only sell over internet platforms that collect and file sales taxes in each state. We don’t have a brick & motar store. We don’t collect sales taxes ourselves anymore since online platforms are now required to handle that aspect.
We used to have TaxJar file our Sales Taxes for us; but we noticed after the law changed they would only file “zero” amount Sales Tax Reports, and we paid for each filing. It didn’t make sense and we discontinued that service. Now were are getting late fees charged ($50/month) for those months that no “zero” amount Sales Tax Reports were filed. So no we had to start filing “zero” amount Sales Tax Reports.
I am wondering - since we no longer collect Sales Taxes - do we still need a Sales Tax License in our state?
I would appreciate knowing how you handle this. Thanks. Sibylle
Seller_viw2dDZgjdIcc
Great question Avianweb. Yes, you do need your tax Id certificate. First, if you are buying products you should not be paying sales tax. Because you are buying for resale, 2ndly, If you are audit you can file zero sales each year yourself if you do not have any retail sales for which you collected tax. The rule is just because you do not collect tax it does not mean you have no sales tax obligation.
34 Antworten
Seller_Xpktjspu2oF5C
Suggest getting a CPA, one that is licensed to operate in your state. When vetting them make sure they understand and have some experience dealing with amazon and the other site. If they don’t have experience with either platform you will get many blank stares.
Doing this on your own is nothing but trouble and will lead to bigger headaches down the road.
Seller_aV1Bh32hE0KND
Seller_NlioVy1llkClO
It seems that this is such a NEW topic that even Accountants are trying to figure out how to proceed. I am working with an amazing accountant who is “Licensed to Practice Before the IRS”. His response was: "With other clients that are selling through 3rd parties I continue to file sales tax reports for Florida. You would report the Total amount of sales and tax collected then take a deduction against the taxes owed that were collected and remitted by the third party on line 6 “Less Lawful Deductions”
However, the instructions over TaxJar are different:
"Do I still need to file returns in Florida?
Yes. Once you register for a license, you will be required to file a return based on the frequency the state has assigned you.
If you’ve previously registered, the state expects you to remain registered and continue to file returns.
If your only sales are Marketplace sales, the state may still expect you to file a zero return. "
I just don’t see the sense of continuously filing “zero” sales tax reports.
Anyhow, I asked my accountant for his opinion on this as well … I just wanted to know how other Sellers are handling this … S
Seller_Hi7wbO2Kbo6bl
Yes, of course you need a sales tax license (or resale permit, or whatever your state calls it).
Most states require you to file, even if you owe nothing.
All wholesale purchases require this. Manufacturers may require it just to talk to you.
Seller_CW0P5hgbsiqWX
Yes. You are a licansed business, correct?
When you obtained your state license to operate a retail business, you were licensed to collect sales tax in your state. Your state may not know how your retail sales company operates (EX: B&M, weekend flea markets, on-line sales, etc.) but will still require you to file your required statements. 
Seller_Fnfv2UKRup5rK
Every state is different, but (emphatically) yes, you need to file in your state, even if the answer is “Zero”. This proves you are an active business and always gives you the option to expand sales directly.
ALSO, some states have. more taxes than just “sales” taxes. Take my native WA for example, maker of jets, coffee, software, and (gosh) AMZ. Washington has what is called “B&O” tax on GROSS receipts. Unless you make airplanes, or run some other business large enough to effectively lobby the state for an exemption, you owe Business and Occupation taxes along with sales taxes each quarter. Amazon may collect and remit sales taxes, but you still have to pay the state B&O taxes, on the gross sales, while entering your AMZ and other “facilitated” sales amounts as a deduction on the Sales Tax portion of your return. Its not a big deal.
Currently I run two businesses with retail sales taxes due, and both business have a mix of “facilitated” taxes and taxes I collect and pay. I just track the source of the income, and have separate columns in my spreadsheets.
Seller_rm9a2zdejXhO9
Yea… in Texas even if you collect nothing, you have to turn that Zero number in otherwise they will hit you a guesstimate tax which you are not going to like.
Seller_0lcPE7gkXNIAT
Yes, I am also in Florida. I add up my sales each quarter and enter it. Then I use that same figure as my tax exempt sales and enter 0 for the total taxable.
I keep the license for several reasons. One is because I buy inventory at local auctions and don’t have to pay sales tax on the purchases. Another is to prove this is a legitimate business, if questioned.
You also need it if you go to a bourse, flea market, etc in Florida to sell.
Seller_tf9czexkd85e0
I only sell on Marketplaces as well and still have to file every month. Each month I have to enter Gross Sales and then use the exemption code for Marketplace sales which brings my sales tax to zero but if I forget to file 1 month or file late I get charged a $50.00 penalty. Its pretty easy to do.
Seller_3kMMzr2jfY70r
Some states tax agencies recognize the marketplace facilitator aspect and clearly define sellers who solely utilize 3rd party marketplaces who collect and remit taxes on their behalf and specifically say the seller is not required to obtain a sellers permit, you just need to draft a resale certificate with your info and the suppliers info BUT and a big but… good luck getting suppliers to accept it since instead of including a sellers permit number you just explain that you are not required to have one. Most suppliers will not abide by what is clearly stated on the tax agencies website… Some major ones have accepted it after explaining what my tax agency has to say on the matter, like for example my amazon business account, but my main supplier will not… forcing me to apply for a sellers permit and having to file a sales & use tax return even though I will owe nothing. I tried it out this year but ended up applying for a sellers permit anyways for my main supplier, it would have been nice to not have to worry about filing that return since it is due end of January every year, which means I get to crunch numbers extra early every year. yay!
