I sell direct sales merchandise (Paparazzi Jewelry). When I buy it from the company I pay my state tax upfront and shipping fees. Can I claim these costs?

[CalCountry]

Just a clarifying question: As a reseller, why are you paying state sales tax up front?  If so, what state?  Thanks.

[shanl105]

Paparazzi charges the consultant the tax rate in their specific state. They charge us the tax on the retail value of our products.  I live in RI so the tax rate is 7%.

[CalCountry]

That is interesting. I'll refer your post to experts for RI who may be able to add information.

[Rainman12 · Accepted solution]

 This company is Not treating their 'associates' as resellers with sales tax licenses, but as consumers, and thus (correctly) gathering taxes on their retail purchases. Apportion tax and shipping costs to your inventory; add both to your cost for each item you.purchased.