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View Full Version : Question regarding RESALE OR SELLER'S PERMIT...



chromecaster
08-14-2014, 02:47 AM
I'm considering using my permit in a different industry and build a different website.

1. Do I need to notify the BOE? I remember I wrote down "online retail" when I applied for the license to cover me in case I ever want to sell different things.
2. Vendors who require a copy of my license, what do they do with it? I mean do they report every single item and quantity that I buy to the government? I want to know how seriously I must take the rule of "no personal" use. If I buy 100 dvd players, and I end up selling 90 of them. I gave away several to friends, and I used one for myself. Will men in black show up at my door?

My goal is to have several websites selling things I'm interested in. A website selling sporting goods, a different website selling tools, and lastly, a website selling Asian theme gifts. I'd like an umbrella website, which explains who I am, which is a online retailer of different industries, and then provide links to the different stores I've opened.

Just curious if I need a different seller's permit for each industry, and curious about how strict the "no personal use" rule is. How would they know I didn't sell all 50 basketballs and that I shoot hoops on the weekends with one of it. Do they have a record of everything I buy like Big Brother?

Please advise, your advice is much appreciated. Thank you.

Freelancier
08-14-2014, 07:24 AM
Vendors who require a copy of my license, what do they do with it?

The point of this one is so that those vendors do not have to report that they collected sales taxes by selling the item to you, because you are accepting responsibility for those taxes when you sell it to someone else. Those sales (in the vendor's accounting software) are considered "exempt" sales and if they get audited, they will have to show who they sold it to and why they didn't collect taxes on it.

Don't know about BOE, you should mention which country you're in....