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Drop Shipping

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Drop Shipping is one of the most misunderstood transactions in sales tax. Common sense tells us that a sale for resale should be a sale for resale no matter what the specifics are. However, when it comes to drop shipping, if you cannot properly document the transaction in the ship to state, than the sale is not recognized as a sale for resale. This creates problems for retailers, wholesalers, distributors and manufacturers alike. In this blog we will demystify drop shipping by addressing specific problems and then providing solutions or best practices for both retailers and suppliers.

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