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Questions about the 2021 Inventory Sales Tax Changes

  • updated 1 yr ago

Q: What is the implication regarding insurance on product in the event there is Warehouse damage and product loss?

    A: Kotis will maintain property insurance to include business personal property of others, including inventory, on a replacement cost basis.  In our terms section 9 we talk about this: https://go.kotisdesign.com/online-services-terms/

Q: What do I do if I resale some inventory items but not all?

    A: You may do one of the following:

  • Provide resale documentation, and have Kotis treat every item as resale. You will handle any tax obligations due for items not to be resold
  • Provide resale documentation, and tell Kotis at the time of each purchase which items should have a resale exemption.
  • Do not apply resale exemption, and if the amount of items for resale is small, accept that some amount of duplicate taxes will be paid

Q: What happens if I do not provide Kotis a Resale Certificate (or other type of sales tax exemption document) for the state where inventory is stored?

    A: Your invoices for the initial production of items will include sales tax starting 4/1/2021 and you will receive an invoice taxing the current inventory as of 4/1/2021.

Q: If I have a credit card portal will I be charged sales tax as well as the end user if I do not provide a resale certificate?

    A: Yes, items will be taxed twice if you resale items but have not provided the appropriate resale documentation to Kotis.

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