Wholesale/Distribution

Are you prepared for a sales tax exemption certificate audit?

If your business falls into the wholesale/distribution industry when sales tax challenges arise they can have a domino effect of negative consequences on the resellers that you supply.

Are all of your exemption certificates in order for those customers of yours that you supply? Was tax paid for the samples, promotions, and giveaways that you pulled from inventory and if so can you provide legible proof for the amount reported on your sales tax returns? If not, you have just opened the door for a possible audit from your local tax authority which can lead to hefty fees.

The wholesale and distribution industry in particular has its fair share of regulations when it comes to sales and use tax compliance. Not being aware of them all oftentimes leads to costly inaccuracies with your bookkeeping records that will trigger an audit.

If you are overwhelmed by the amount of sales and use tax laws affecting you as a wholesaler/distributor, or if you have already been selected to undergo an exemption certificate audit, you need to connect with a sales tax specialist as soon as possible to get more clarity on your strategic options. 

All information provided on this site is of a general nature and is not intended to address the circumstances of any particular individual or entity. It is provided with the understanding that it does not constitute tax, legal, accounting, or other professional service. No one should act upon this information without first seeking appropriate professional advice following an adequate examination of the facts of the particular situation. The information herein is also intended to address California Sales and Use Tax only and may not be applicable to similar taxes in other jurisdictions. Privacy Policy
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