QUESTION
Interested to import women apparel from China and wholesale them in US (I am in AZ) Do i pass on the burden of sale tax to out of state retailer buyer
Asked on Mar 05th, 2012 on Business Law - Arizona
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I am trying to create a wholesale import business in Arizona where I would import women apparel (handbags, shoes, clothing, etc) from china and wholesale them to retail buyers throughout us. I was reading AZ dept of Revenue and something about Privileged Tax Special situation where the burden of tax can be pass on from seller to out of state retail buyers. Is that correct?? I understand for my in-state retail buyers, I will be responsible for the tax but not sure about out of state buyers. Thank you very much
1 ANSWER
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Your question makes no sense -- you cannot "wholesale" goods to "retail buyers." Are your buyers end-users or resellers? That makes a difference with respect to in-state sales. As a general matter, you are under no duty to collect sales tax on sales shipped out of state, whether for resale or otherwise, unless you have some "nexus" with the buyer's state.
Answered on Mar 06th, 2012 at 11:01 AM