How to handle Sales and Use tax exemption for camera reselling business?

But if I don't collect sales tax from them, won't I get in trouble when my state asks why I didn't collect any sales tax for these sales? Do I just show them the resale certificate during an audit or something? And does this resale certificate need to be renewed every year?

You won't get in trouble because you'll have proper documentation showing why you didn't collect the tax. You should keep the resale certificate in your records, and yes, that's exactly what you would show during an audit. Regarding renewal, it depends on the state. Some states have resale certificates that need to be renewed annually, while others may be valid for longer periods. Some states even allow blanket certificates that remain valid until revoked. Once you get the certificate from mpb.com, it should indicate its validity period.

Wait is this legit? I thought only accountants could help with sales tax issues. How does it work with different state requirements? I sell through multiple platforms and its a nightmare trying to figure out nexus in each state.

Sounds too good to be true. How does some AI thing know all the specific sales tax exemption rules for different states? My accountant charges me $200 an hour and even she gets confused about the rules sometimes.

The service actually analyzes your sales data and identifies where you have nexus based on your transaction history. It flags transactions where you might need exemption certificates and even generates state-specific reports. It's basically a document analysis tool that applies tax rules to your specific situation. The reason it works better than just asking general questions to an accountant is that it actually looks at your specific transaction patterns. My CPA actually recommended it because he was tired of manually reviewing my hundreds of transactions each month.

How does this work exactly? I thought the whole point was that state tax offices are impossible to reach by phone - that's why everyone just gives up and hires expensive tax professionals.

Yeah right. I've tried EVERYTHING to get through to my state revenue department. Waited on hold for 4+ hours multiple times. No way this actually works. And if it does, they're probably just using a bunch of auto-dialers which is sketchy.

It actually uses a priority callback system that most government agencies have but don't advertise. It's completely legitimate - they just know how to navigate the phone systems efficiently. They don't use auto-dialers or anything sketchy. The service basically waits on hold for you and calls you back when they get a human on the line. I was skeptical too until I tried it, but I got through to someone who gave me specific guidance on my sales tax exemption situation in my state.

Thanks for bringing this up. How would I check if mpb.com has nexus in my state? And you're saying I still need to file returns even if all my sales are exempt? That's a bit confusing.

You can usually check with your state's department of revenue website - they often maintain lists of registered businesses or marketplace facilitators. But more practically, just ask mpb.com directly if they have nexus in your state when you request their resale certificate. Yes, in many states you still need to file returns even when your sales are exempt. You'd report the total sales and then show the exempt portion. It's annoying paperwork, but failing to file returns (even zero-tax returns) can result in penalties in many states. Some states allow annual filing for businesses with only exempt sales, which reduces the paperwork burden.

But how do you use a resale certificate on eBay? They don't exactly have a place to upload that during checkout. Is there some special process for marketplace platforms?

You're right that eBay doesn't have a standard way to upload resale certificates during checkout. For marketplace platforms like eBay, you typically have a few options: 1. Contact individual sellers directly after purchase to request a refund of the sales tax portion (providing your resale certificate) 2. Some states allow you to claim a credit on your sales tax return for tax paid on items purchased for resale 3. Look for sellers who specifically mention they can handle resale certificates in their listings The easiest approach is usually option 2 - just keep good records of what you paid in sales tax on inventory purchases and claim it as a credit when you file your sales tax returns. Your state's department of revenue can tell you the specific process for your state. It's definitely worth pursuing since those small amounts add up quickly when you're buying inventory regularly!