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How To Get Sales Tax Exemption To Increase Your Profit Margins Drop Shipping From Walmart

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$20 eBay DropShipping Course - https://goo.gl/bW6u7c $20 Be a YouTuber Course - https://goo.gl/ic8UvU Tax Software for the Self Employed - https://goo.gl/qdJ72A Check out Marc's Youtube channel, also about dropshipping! https://www.youtube.com/channel/UC3gpg9NFf3buGlX0E_gTqJQ This is part of an ongoing episodic series about dropshipping on eBay using walmart as a primary source. Don't worry about viewing it in order.. check out the full playlist and watch what you are interested in watching! https://www.youtube.com/playlist?list=PLEQDIBNPohwocC6eZIwwnETGQ3B2TrCcq Facebook Group: https://www.facebook.com/groups/802147853281835/ My Patreon: https://www.patreon.com/GullyGames Hydra Lister Fast eBay Listing Tool: http://start.hydra-lister.com/JackPitman SKUgrid Inventory Management and Repricer: http://skugrid.com/web/?ref=lymeliterate Auto Upload Tracking and Copy Paste Addresses: https://dropship4arbitrage.com/aff/999 Quickly Delete Under Performing Listings: https://feesdelister.top/aff/1499 Google Chrome Extensions: https://chrome.google.com/webstore/detail/grammarly-for-chrome/kbfnbcaeplbcioakkpcpgfkobkghlhen?hl=en https://chrome.google.com/webstore/detail/session-buddy/edacconmaakjimmfgnblocblbcdcpbko?hl=en https://chrome.google.com/webstore/detail/link-grabber/caodelkhipncidmoebgbbeemedohcdma
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Text Comments (67)
adam hayt (13 days ago)
Can some one help me i'm international seller and if add tax to the final price of my product it's too high i contacted walmart in live chat they said there is nothing we can do for international seller,i'm from overseas
Lachheb Drawing (15 days ago)
dude you saved my ass
The Abraham HD (2 months ago)
Also, does this work on Amazon as well?
The Abraham HD (2 months ago)
Can't you get a Multi-Jurisdiction form and it would cover California, Connecticut, DC, Illionois, Maryland, Missouri, & South Carolina? I just filled that out, and will file it to Walmart this week.
Bassem Melika (2 months ago)
Hey Jack. What about Delaware EIN and LLC for Amazon tax exemption? Do you know how it works? Appreciate your support plz
Mary Vance (2 months ago)
Home Depot has changed their tax exempt policy. Do you have a video for it?
BALKANSKA MRAKA (3 months ago)
Can you please make a video how did you apply for ST-14 and ST-120. Thank you.
Tim Novak (3 months ago)
Hi Jack, I got an email from Walmart saying "• Action required: Need NY ST-120 and VA ST-14, DC needs a state license. Please edit your existing application at https://www.walmart.com/taxexempt/ " I live in Ohio and have no nexus with DC to even get a licsence so I just unchecked DC I filled out the st120 no problem the va st-14 says this. "COMMONWEALTH OF VIRGINIA SALES AND USE TAX CERTIFICATE OF EXEMPTION This certificate of exemption is for use exclusively by an OUT-OF-STATE DEALER who purchases tangible personal property in Virginia for immediate transportation out of the Commonwealth of Virginia in his own vehicle for resale outside this state. This doesn't even apply to me. So I emailed walmart. But did you have this issue or one like it?
Ez LeapnBuy (3 months ago)
how does this increase profit margin? because in the end you still have to pay those sales tax to the state you register with. you just not paying the sales tax up front upon the purchase with your retailer. please enlighten me.
scoop245 (2 days ago)
I think b/c you only have to pay sales tax on sales to states where you have nexus (physical presence etc). https://quickbooks.intuit.com/r/taxes/need-collect-sales-tax-much/
too Ku (3 months ago)
Jack Pitman ok still not clear. let make it simple: i register my tax id with Montana. and i apply for a sale permit for that state and go to home depot to get tax exempt. question can i use this tax exempt for purchases from buyers not from Montana?
wen vu (3 months ago)
Damn it Jack, you rock!
Samuel Tung (3 months ago)
Would you suggest registering in those 8 states to become tax exempt in those states?
Samuel Tung (3 months ago)
do you just end up making less profit in those 8 states that you are not tax exempt from?
Lachheb Drawing (15 days ago)
+Voice of Seven no u wrong its not work that way
Voice of Seven (2 months ago)
If you are Dropshipping just always assume that you will be paying sales tax and include it in your pricing. That way for the ones that are exempt will just have extra profit :)
Matty G (4 months ago)
Jack, the Universe has led me to your channel, well met my friend!! Brand new drop shipper here. I'm licensed and ready to operate as a Sole Proprietorship starting next week :D I made the same mistake with Walmart, by only selecting the state in which I currently reside, oops...time to resubmit my application :/ So how do you negate the cost of shipping to the states mentioned in your video? I was thinking about including sales tax to those individual states when I first create my eBay listings, is this a good idea?? Or would you recommend just eating that cost? In any case I love your channel. And I love you!! Thank you so much for the wealth of information you provide to the community, Namaste!!
Asparuh Ivanov (4 months ago)
Hey man, great video! But do you know if I can get a resale certificate if I don't live in USA? I have a registered company in Europe. Thank you!
Kids FunTV Show (4 months ago)
Honestly I hate the way you talk 🤢
Hawaiian Joe (4 months ago)
Jack, what is your approach with dealing with the sales taxe on purchases of those 8 states?
The Abraham HD (2 months ago)
Apply for the necessary paperwork required. California and Florida are tricky.
MaineLy Thrift (5 months ago)
So I have an EIN ID number, do I need to do anything further or do I use that number in the Sales Tax # on this form?
Gal M Levy (5 months ago)
Hey Jack ! Interested to know more on how to get a tax exempt in Texas ?!? THX
Neil Boone (5 months ago)
If anybody can help when I finish the page where you upload the files and I click save and continue it goes to a page asking me to sign in again and then if I do it goes back to the first page of the application. What am I doing wrong? Help please!
fanaticofutube (6 months ago)
The reason why you have to pay taxes to the unchecked states is because Walmart actually has Distribution Centers within these states...Confirm true? So if true imagine if Walmart decides to open one Distribution Center in all 50 states...yikes!
Conner (4 months ago)
then that would be a very illogical business decision on their part...not likely.
Candace Gustine Cabral (6 months ago)
perfect! thanks so much. this is def not self explanatory. Saved us ALL from calling walmart. :)
Carmin Laurens (7 months ago)
Jack, this was so very helpful to me. Thank you so much for taking the time to make this video and explain all of this. You are correct, the Walmart Tax Exempt page is very confusing but your video broke it all down for me.
DaMunchMan (8 months ago)
So in the case that you have an order from one of the states that aren't checked, you pay tax on but do you charge tax on them for your sales? And do we charge tax on any other states?
ChiTown Bulls (8 months ago)
When I am tax exempt, the only state im obligated to collect sales tax from would be my state where I have nexus in, michigan. All the other states im exempt from, I dont have to collect or charge, do I? thank you so much
Thinh Nguyen (8 months ago)
Where do i find what type of documents are needed to uploaded for my state? Thanks Jack
ChiTown Bulls (8 months ago)
Jack Pitman So your not worried at all about competitions price? Your ok pricing higher than them
ChiTown Bulls (8 months ago)
Jack Pitman Hey Jack. Do you register for those 8 states to get a resale certificate, or just bite the bullet and pay sales tax on the product and take a loss for that product? Or do you only ship for your tax exempt states?
Svetlana Wenzell (8 months ago)
Last update: California, Connecticut, Washington DC, Florida, Hawaii, Maryland, Massachusetts, Mississippi, Tennessee
May Carino (3 months ago)
last update what? what about hawaii?
Stacs (10 months ago)
Hey Jack what do I have to do if my home state is Hawaii, since I can't upload my certificate since it wasn't checked
Maybe Lee (10 months ago)
Hi Jack do you have to register the business (as a sole proprietor) prior to conducting any eBay sales? Also, I made the mistake of using my personal credit card (that I use to pay off my bills) to fulfill orders - at the moment I don't have another credit card. Should I stop listing/selling until I get a separate card? Registering for NY State Sales Tax: https://www.tax.ny.gov/pdf/tg_bulletins/sales/b17_360s.pdf My concern is: CTRL+F "Penalties for failing to register for sales tax" The maximum penalty is up to $10K " If you expect to make taxable sales in New York State, you must register with the Tax Department at least 20 days before you begin business" (I made a sale in my state using Marc's old tax table)
df gdaa (10 months ago)
Hello - so do you stop shipping to those states where you still must pay sales tax? Wouldn't it destroy your margins? Thanks!
Christopher Orero (10 months ago)
JACK. Marc mentions in some of his videos that he only pays tax in the state his corporation is in. Basically no tax in every state except florida. But there isnt any information beyond that. Even this method in your video which was covered already doesnt give you all states. The only explanation I can think of is having corporations in all the states that walmart asks for certificates
Michael Mullen (10 months ago)
Hey Jack what file do I upload for the state Im in? My state only gave me a number for the certificate. Do I upload a screenshot or take a picture of the certificate when it comes in the mail? Help please..
Michael Mullen (10 months ago)
Thanks Jack!
heathernownthen (11 months ago)
Super helpful ! Thanks Jack !!!
Iris Green (1 year ago)
Thank you so much Jack. Very helpful video. I am in the process of doing that now, and got stuck on the form where you put no nexus info. When I called Walmart tax exempt line, they actually gave me 10 states to uncheck: California, District of Columbia, Florida, Conneticut, Hawaii, Maryland, Mississippi, Tennessee, Wyoming, Massachusetts. (I'm in Virginia as well.)  I'll double check with Walmart again. Thank you Thank you. One less bridge to cross.
Neil Boone (5 months ago)
Where did you did the phone number?
Hulk Gamer (11 months ago)
Did they say the same 10 again when you verified?
Legacy Janitorial (1 year ago)
So in those other states do you charge tax on ebay
Uhave (1 year ago)
Hey Jack, trying to understand this tax exemption - If you (the walmart buyer) are not paying sales tax and neither is your customer (the end user), shouldn't someone pay for it? Also, after becoming tax exempt - Is there any report you need to file to the states in which you did not pay any sales tax? Thanks for answering
Kikemonster (3 months ago)
I have to agree with you in this, but I feel that the whole reason of applying to become tax exempt is just to verify your account with walmart and avoid order cancellations.
too Ku (3 months ago)
then what is that damn point of applying for tax exempt if we paying our state we reside in once tax due date comes???? let the supplier charge the dropshippers, and we have one less thing to worry about. yes?
David (1 year ago)
Understood, so you're better off having Walmart collect the sales tax because you can collect reward points while paying for the order & tax. However, if you're going to be paying Walmart for the sales tax, not the customer, you're going to have to increase your sales price on eBay which will decrease the number of sales you get since most people will go with the competitor and later find out they have to pay sales tax at checkout.
David (1 year ago)
From my understanding, if you're not paying sales tax with Walmart it is your responsibility to collect it from the customer. The sales tax must be paid at one point or another. You don't have to collect it in the states Jack checked but you do in all the other states that require you to register to become tax exempt.
Best Videos To Watch (1 year ago)
Great video Jack! This will help my LLC business charge less with the tax exempt status when drop shipping Walmart Products. You rock dude!
zsuzsanna farkas (1 year ago)
Hello Jack It would be great to have a sales tax exemption. But does this only work with US based business registration?? I live in Hungary. Thanks
Tamás Fonódi (5 months ago)
I live in Hungary too. :) Have u figured out something?
Sonnia Kaufmann (1 year ago)
That's a great Question. Answer ?
larck gatdula (1 year ago)
Hello jack how do you process or file a tax when its time to make a payments and what software we should use or do. Thanks a lot
Hollow Earth (5 months ago)
larck gatdula You can use Taxjar to pay taxes like me.
Jane Su (1 year ago)
Thanks Jack. This is very useful. Now I know what did I do wrong. I only selected my state. Do you know how to go back and add the rest of the states?
Jane Su (1 year ago)
Finally I got an approval from Walmart after multiple rejections :-) Thanks to Jack for this video!!! Here's an important note from an approval email about 10 states that are not part of the tax-exempts "Resale Organizations: Merchandise must be for resale for orders to be eligible for tax exemption. Please note that orders delivered to CA, CT, FL, HI, MA, MD, MS, NY, TN and VA require additional documentation in order to be eligible for tax refunds due to drop shipment laws in those states."
Jane Su (1 year ago)
Hi Jack, I followed your instruction and reapplied. However, WM requested me to fill out NY ST-120 and VA ST-14. I told them that I'm in GA and I do not have Nexus in those 2 states and this is their response "If those states are included in your ship-to list; we are required to have the forms. You can either remove those two states from your ship-to list in the online application or you will need to upload a completed NY ST-120 and VA ST-14. Whether you have nexus in those two states or not is immaterial; those two states see Walmart as the Seller if we ship our merchandise to your customers there, and Walmart does have nexus in both states." I know that you're in VA, but do you have to fill out NY ST-120?
Mohamed El Bana (1 year ago)
yup i did it last night, and got approved like a few mins ago!! YAY Walmart LOL
Mohamed El Bana (1 year ago)
I did the same thing lol, i will try to redo it and see what will happen
Mario Lopez (1 year ago)
Thanks for sharing that useful info. I really appreciate it. Keep up the good work. I'm sure your counting the days for your new beginnings in life. :)
Jake B (1 year ago)
You may not know but any idea if you dropship from international suppliers such as AliExpress. Are they automatically tax exempt as the supplier is currently not in the US? Thanks, great video.
Ger Prz (1 year ago)
Don't get what is in the file you upload to all the no nexus states?
BambooScar (7 months ago)
Thinh Nguyen (8 months ago)
And what type of document i need to upload for my state?

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