If you are purchasing raw materials used in manufacturing, that means you are sales tax-exempt and should never pay sales tax on those ingredients. Sales tax is only paid once (by the end consumer). When purchasing sales tax-exempt raw materials, most states require that you submit a sales tax exemption certificate (aka reseller's permit) to every vendor; otherwise, you must pay sales tax. The state will seek both tax & penalties during an audit if you don't pay sales tax or haven't supplied the correct paperwork.
Sales Tax Exemption Print
Modified on: Thu, 3 Sep, 2020 at 1:28 PM
Did you find it helpful?Send feedback
Sorry we couldn't be helpful. Help us improve this article with your feedback.