Sales tax number question

Soapmaking Forum - Soap & Candle Forums

Help Support Soapmaking Forum - Soap & Candle Forums:

Stacyspy

Well-Known Member
Joined
Apr 9, 2015
Messages
522
Reaction score
579
Location
Missouri
I received an invitation to a craft show, and they sent me an application. They require me to give them my sales tax number. I've never had that asked before, and I've filled out a good number of apps. Is that standard, and my other shows don't bother with it? Or is that something they shouldn't ask? Thanks for any info :)
 

DeeAnna

Well-Known Member
Joined
Feb 20, 2013
Messages
14,025
Reaction score
21,177
Location
USA
I sell my products (not bath & body) at wholesale and I ask for a tax ID number when establishing a wholesale account with someone.

That information tells me the person is prepared to pay state sales tax on their sales within their state. Otherwise, I could be held liable for paying MY state sales tax on my sales to them.

It also means the person is more likely to be a legit business -- it weeds out most of the retail buyers who sneakily want to buy at wholesale. I get a few like that from time to time.

If a craft fair does not ask for ID numbers, then the fair organizers could be held liable for paying state sales tax on the gross sales from the show -- they can't prove their vendors are ready to pay the sales tax. So it's pretty dumb to not want that info from their vendors.
 
Last edited:

Stacyspy

Well-Known Member
Joined
Apr 9, 2015
Messages
522
Reaction score
579
Location
Missouri
It makes sense. It just threw me for a second. I'm wondering if because there are also direct market folks at the shows I do, the organizers assume everyone has one, or is covered.


I sell my products (not bath & body) at wholesale and I ask for a tax ID number when establishing a wholesale account with someone.

That information tells me the person is prepared to pay state sales tax on sales within their state. Otherwise, I could be held liable for paying MY state sales tax on my sales to them.

It also means the person is more likely to be a legit business -- it weeds out most of the retail buyers who sneakily want to buy at wholesale.

If a craft fair does not ask for ID numbers, then the fair organizers could be held liable for paying state sales tax on the gross sales from the show. So it's pretty dumb to not want that info from their vendors.
 

DeeAnna

Well-Known Member
Joined
Feb 20, 2013
Messages
14,025
Reaction score
21,177
Location
USA
It's possible you're right, but that's a lazy way of doing things, especially when the organizer just has to add another line to the sign-up form for the tax ID -- it's a simple fix that could save hours of grief later! :) It's also possible some organizers, especially of the very small fairs, haven't done the homework to understand their potential liability. Hard to say.
 

TBandCW

Well-Known Member
Joined
Feb 23, 2015
Messages
513
Reaction score
252
Location
Near beautiful Lake Tahoe, Nevada
Here in Nevada you fill out a tax form at the end of the show and can use your social security number if you don't have a tax id. Makes it easy on the person who only sells occasionally.

I also sell in Calif and have a sales tax permit with them.
 
Top