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I have an e-commerce website and suppliers are asking for Multi-State Sales Tax exemption forms. Do I need to obtain a Sales Tax Number or Certificate of Authority from each state?

Full Question: I am building a website and my suppliers are asking for a Multi State Sales Tax exemption form. Does this mean I need to obtain a Sales Tax Authorization Number & Certificate of Authority from every state I plan to sell my products in?

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Answer:

Diane Yetter photoIf you are making sales of taxable property, you are required to register to collect sales tax in any state in which you maintain a substantial physical presence. If your only location is NY, then you are required to register with the NY Dept of Taxation and collect sales tax on all taxable sales shipped to NY. Once you have at least the NY registration number, this number can be used to complete a resale certificate that you can provide to your suppliers. If your suppliers are shipping your goods to you in NY, you need to provide them with the NY Resale Certificate (ST-120 -http://www.tax.ny.gov/pdf/current_forms/st/st120_fill_in.pdf). If your suppliers are drop shipping the goods to your customers in other states, many state will accept the Multi State Exemption Certificate with your NY registration number. However, not all states will accept this. You can download a multi state exemption certificate on the MTC web page at http://www.mtc.gov/Resources.aspx?id=1594.

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