Should I Charge Tax When I Wholesale My Jewelry?

I usually do my direct and wholesale orders for my handmade jewelry in Delaware which is a tax free state. Today I approached a store in Maryland and they purchased at the wholesale quantities and I did not even think about the taxes. Should I have charged the shop owner the sales tax? I do not include the taxes in the pricing of my items.

Thanks

Answer:

Sales Tax and Wholesaling Jewelry

© by Rena Klingenberg; all rights reserved

Whenever you sell your jewelry wholesale or on consignment, you are not responsible for collecting or paying sales tax.

Sales tax is collected and paid by the person who makes the final retail sale - in this case, the Maryland store that will be selling your jewelry at retail prices to its customers.

So - whew! As the wholesaler in this transaction, you did exactly the right thing, and you're off the hook for sales tax. :o)

See more about Wholesaling and Consigning Jewelry.