Sales Tax and Tax Exemption

  • To qualify as a wholesale or drop shipping member, the customers are required to have a valid business or resale license.
  • Sales Tax for Customers in Texas
  • West Star is a business located in Texas such that any customers with the shipping addresses inside Texas state would have to pay for sales tax.  
  • The wholesale customer can avoid paying sales tax on the purchase of products that you plan to resell, but the customer must provide a valid resale certificate with the Tax ID to West Star by person, cell-phone or email.
  • Sales Tax for Customers outside Texas
  • West Star currently only has nexus in Texas state such that customers in other states are not required to pay for sales tax. But the customers have to provide a valid resale certificate by email or cell-phone message
  • Reference1: Sales Tax Nexus Defined-  http://blog.taxjar.com/sales-tax-nexus-definition/
  • Reference2: I was Charged Sales Tax on My Inventory Purchases- Now What?- http://blog.taxjar.com/sales-tax-inventory/
  • Reference3: SALES AND USE TAX- https://comptroller.texas.gov/taxes/sales/