Simplifying Drop Shipments

When you buy goods from a vendor, you undoubtedly have a good understanding of the sales tax rate you should pay. If the vendor has a physical presence (nexus) in your state, then you will pay sales tax based on where you use the items. If the vendor does not, you will not pay sales tax, but will be required to remit use tax. When purchasing items for resale or manufacture, you will provide the vendor with an exemption certificate so that no tax applies. This is all sales tax 101. However,…