Greetings,
I have some questions about the stock lenses sale tax in California and I asked some CPA but didn't get the answers.
I'm planning to start a stock lens wholesale business in California. I will import my lenses from my oversea's supplier. What I understand is that California will request collecting sales taxes on wholesale level which means if I sell my lenses to eye-care professionals, I need collect sale tax. My question is what if I sell my lenses to another region wholesaler or distributor, do I still need to collect tax since their purpose of buying is to resale? It doesn't make sense to me if I do need to collect sale tax since it means the lenses will be double taxed if there are multiple layer of wholesalers.
Another questions is as a wholesaler, after importing my lenses from oversea's supplier, do I need to pay use tax? I don't think I should since I want to resale the product but again the whole taxing at wholesale level thing make me not sure about it.
Thanks a lot if somebody can explain it a little bit.
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