Options

Does Smugmug allow reseller certificate?

mrhonimrhoni Registered Users Posts: 173 Major grins
If I purchase the photos for the client, I'd not want to be charged sales tax as I'm going to resell them to the client, charge them a price and I have to collect sales tax on that?

Comments

  • Options
    TysaxTysax Registered Users Posts: 53 Big grins
    edited April 25, 2013
    Hello,

    Pros in California need not collect tax since SmugMug collects sales tax for all orders that are placed from and shipped to a California address. That tax is then paid through SmugMug to the sales tax collection authority. If you're placing a order and it is shipped to your California address, sales tax will not be charged. You're free to handle your shipment to the client as you see fit.

    If you have any additional questions, feel free to contact us at the Smugmug help desk; help@smugmuh.com

    Have a great day!
    ____________________________
    Tyree
    Smugmug Support Hero
    help.smugmug.com
  • Options
    mrhonimrhoni Registered Users Posts: 173 Major grins
    edited April 25, 2013
    Tysax wrote: »
    Hello,

    Pros in California need not collect tax since SmugMug collects sales tax for all orders that are placed from and shipped to a California address. That tax is then paid through SmugMug to the sales tax collection authority. If you're placing a order and it is shipped to your California address, sales tax will not be charged. You're free to handle your shipment to the client as you see fit.

    If you have any additional questions, feel free to contact us at the Smugmug help desk; help@smugmuh.com

    Have a great day!

    A bit confused on your answer. I am interpreting the answer as if the order is placed in California and the shipping address is not my address but is in California, then it is taxed. If the order is placed in California and is shipped to my address, then it is not taxed. If this is true, I placed an order and had it shipped to my home and it was taxed.
  • Options
    ian408ian408 Administrators Posts: 21,914 moderator
    edited May 1, 2013
    A better way to explain a reseller certificate (as far as the State of California Board of Equalization is concerned) is to say that it allows a qualified individual to purchase items for resale without paying sales tax.

    Say Keith wants to create a package of prints he will deliver directly to his client. He would place an order via SmugMug, SmugMug would verify Keith has a valid seller's permit and if necessary, complete a California Resale Certificate. His order would then be processed and sent to him-no sales tax would be charged to Keith. The reseller is responsible for collecting and reporting the sale to the BOE.

    One thing SmugMug would need to allow is a way for pros to have a price list for the general public and a method for allowing the pro to mark an order for resale that would be fulfilled at the SmugMug base price (ie; if a 4x5 is $.15 base price and a pro marks it up to $.45, when the pro selects "for resale", instead of $.45, the print would be charged at the $.15 rate).

    Did I get that right?
    Moderator Journeys/Sports/Big Picture :: Need some help with dgrin?
Sign In or Register to comment.